Monday, September 20, 2021
HomeNewsBitcoin & Co .: EU wants to make cryptocurrencies traceable

Bitcoin & Co .: EU wants to make cryptocurrencies traceable

Anyone who makes payments using cryptocurrency usually leaves comparatively few traces. Transactions with Bitcoin & Co. are largely anonymous. A fact that contributes significantly to the success of digital money, but at the same time facilitates illegal business and money laundering. Governments around the world have been considering regulating the crypto market more tightly for some time, now the EU is pushing ahead and could change it permanently.

As reported by, the European Commission recently tabled legislative proposals to curb financial crime. This includes a draft that is intended to oblige operators of crypto platforms to record and transfer the personal data of their customers. Transactions with virtual currencies would then be just as traceable as classic bank transfers.

The end of anonymous wallets

According to the report, some crypto companies are already subject to such obligations. Current EU laws to prevent money laundering and the financing of terrorism contain similar regulatory requirements, but do not apply to the entire market. That should change with the new laws. The use of anonymous wallets would therefore be prohibited in the future. Platforms such as Binance, Coinbase and Kraken would have to record and save the name, address, date of birth and account number of the payer and the name of the recipient of the money for every payment order.

The EU Commission believes that the crypto industry will benefit in the long term from these standardized framework conditions for all market participants. When drafting the laws, attempts were made to take the necessary steps to curb crime and adapt to international standards without burdening the industry with excessive overregulation. In addition to the said legislative proposals, the EU wants to establish a separate authority to track money laundering transactions in the crypto sector by 2023. The EU member states and the European Parliament now have to vote on the proposals of the EU Commission. It can take up to two years for a decision to be made.

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Hasan Sheikh
Hasan, who loves technology and games, is studying Computer Engineering at Delhi JNU. He has been writing technology news since 2016.


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