EU Will Impose Strict Rules on Cryptocurrency Transfers

The EU will impose strict rules on cryptocurrency transfers. The European Commission has proposed a law on cryptocurrencies.

The European Commission, which is the governing arm of the European Union, which continues to work on the EU Central Bank Digital Currency (CBDC), that is, the digital Euro, has started to make more specific moves on cryptocurrencies. According to the news of Reuters; Today, the Commission presented to the members a bill containing articles on regulations. Reasons for the proposal, such as the financing of terrorism and money laundering, which the cryptocurrency universe has taken for granted, were cited.

Transactions of Anonymous Wallets Will Not Be Accepted

According to the Commission's proposal, companies that make cryptocurrency transactions will be obliged to keep the name, address and wallet information of the person making the transaction and give it to the authorities when requested. In addition, transactions of anonymous wallets without this information will not be accepted in any way. If the law is passed, the rules will be included in the Travel Rule. In the statement given by the Commission, following expressions were used: “Companies that provide the transfer of Bitcoin or other crypto assets have to share the information of the receiver and sender with the authorities. The travel rule, which is also recommended by the Financial Action Task Force (FATF), an intergovernmental regulatory body, is currently applied to bank transfers as well. These changes are applicable to crypto assets such as Bitcoin. will ensure traceability of all transfers and help prevent and detect activities such as money laundering or terrorist financing.Just as anonymous bank accounts are prohibited under EU anti-money laundering rules, anonymous crypto-asset wallets will be banned. It aims to introduce balanced regulation rules without putting undue pressure on the industry, as recommended to comply with standards and counter threats. The European Commission, the governing body of the European Union, has proposed a law on cryptocurrencies. The proposal also includes articles on prohibiting anonymous wallets and providing the necessary information of the parties to the authorities in cryptocurrency transfers.”