European Union may ban anonymous crypto transfers

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The European Union has proposed a ban on anonymous transactions that could affect cryptocurrency services by 2024.

EU announces next rules

In a new post, the European Union wrote that “EU AML / CFT rules will fully apply to cryptocurrencies: all crypto asset service providers will have to apply the rules of the EU to stop cryptocurrencies. [from being used] make fake money.

According to the proposal, companies that process cryptocurrency transactions must register the names and information of customers.

The plan would see the EU create a central authority called the EU Anti-Money Laundering Authority (AMLA), which would unify rules across the financial sector and “close the loopholes” for criminal activity.

In one related statement On Twitter, Commissioner Mairead McGuinness called cryptocurrency “one of the newest ways to launder money” and said the rules would apply to the entire crypto industry. “We will ban anonymous crypto wallets and ensure that transfers of crypto assets are traceable,” she concluded.

Will all crypto wallets be affected?

While many headlines imply that the rule would affect all cryptocurrency wallets, it appears the rule would only affect custodial wallet offerings such as exchanges and web wallets i.e. services that manage cryptocurrency on behalf of users.

It is unlikely that the policy can be enforced against non-custodial wallets, including official wallets used by many crypto projects.

The United States has attempted to create similar regulations that would add supervisory rules for wallet providers. However, those plans were put on hold when President Biden took office in January.

Disclaimer: At the time of writing, this author held less than $ 75 worth of Bitcoin, Ethereum, and altcoins.

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