Sunday, May 29, 2022
HomeNewsEU Parliament Passes Privacy-Busting Crypto Rules

EU Parliament Passes Privacy-Busting Crypto Rules

The crypto community is however criticizing this development, mentioning it to be a move that would restrict innovation and invade privacy.

European Union (EU) parliament passes new privacy-busting crypto rules amid severe criticism from the community. 

On Thursday, legislators in the European Union voted in favor of a de facto monitoring regime for Bitcoin and cryptocurrency transactions. 

The recommendations aim to expand anti-money laundering (AML) laws to the crypto sector, which now apply to traditional payments exceeding $1,114. 

Read More: Mayflower Autonomous Ship will attempt a Second Ocean Crossing with AI Captain

This step has been taken as the region tries to collect identifying information on transfers between private, self-custody wallets. The crypto community is, however, criticizing this development, mentioning it to be a move that would restrict innovation and invade privacy. 

Many of the controversial amendments were rejected by members of the center-right European People’s Party (EPP), who denounced what they called a “de facto ban of self-hosted wallets.” 

Before the vote, Brian Armstrong, the co-founder and CEO of Coinbase, expressed his concern with the new restrictions, calling them “anti-innovation, anti-privacy, and anti-law enforcement.” 

“This means before you can send or receive crypto from a self-hosted wallet, Coinbase will be required to collect, store, and verify information on the other party, which is not our customer, before the transfer is allowed,” added Armstrong regarding the new regulations. 

According to the proposal, even the smallest crypto transactions would require the identification of payers and recipients, including transactions with self-hosted wallets. 

Earlier last year, national governments announced that they planned to eliminate the EUR 1,000 cryptocurrency threshold, citing the ease with which digital payments can circumvent it, along with including private wallets not run by regulated crypto asset providers. 

Subscribe to our newsletter

Subscribe and never miss out on such trending AI-related articles.

We will never sell your data

Join our Telegram and WhatsApp group to be a part of an engaging community.

Dipayan Mitra
Dipayan Mitra
Dipayan is a news savvy writer, who does not leave a single page of news paper unturned. He is also a professional vocalist who enjoys ghazals. Building a dog shelter is his forever dream.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular