As regulatory concerns about the $2.1 trillion crypto sector grow, lawmakers of the European Union have voted in favor of outlawing anonymous crypto transactions.
The EU is About to Strip the Crypto Industry of its Anonymity
According to reports, more than 90 lawmakers voted in favor of the proposal. The lawmakers expressed their concerns about the possibility of crypto upsetting the stability of financial markets and their roles in facilitating crimes.
The ECON and LIBE committees of the EU parliament have voted in favor of crypto exchanges being required to obtain, hold, and submit information on those involved in transfers.
Tighter AML Requirements
In addition, payers and recipients of any amount of crypto (as opposed to the previous €1,000) will be required to meet anti-money laundering (AML) requirements. This also applies to transactions with unhosted or self-hosted wallets.
Some extra measures currently under discussion could see unregulated crypto exchanges getting cut off from the conventional financial system
The amendment has not yet been ratified, as the bill must also be agreed on by both the parliament and national ministers (the EU Council), who are in charge of passing bills into law.
On the Flipside
- Many members of the European People’s Party (EPP) opposed the changes, calling it a “de facto ban of self-hosted wallets.”
Why You Should Care
The move from the EU parliament could stifle innovation in the crypto industry and invade the privacy of users.
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