The EU Intends To Prohibit Anonymous Cryptocurrency Wallets

According to Reuters, the European Commission, the executive body of the European Union, intends to prohibit anonymous cryptocurrency wallets.

Legislation Proposed To Prohibit Anonymous Cryptocurrency Wallets

The European Commission has proposed legislation that would require companies that transfer Bitcoin and other cryptocurrencies to acquire information on the sender and receiver to prohibit anonymous cryptocurrency wallets. According to a recent news release, the goal is to crack down on illegal activity using cryptocurrency.

According to the commission:

“Today’s changes will provide complete traceability of crypto-asset transfers, such as bitcoin, and will allow for the prevention and detection of their prospective use for money laundering or terrorism financing,”

The customer’s name, address, date of birth, account number, and the name of the person who receives the assets are some of the details that should be acquired. The rule is also a recommendation of the international watchdog, the Financial Action Task Force (FATF), and is already applicable on wire transfers.

Authorization By The EU Member States & The European Parliament

According to the Commission, the goal of this proposal is to “find the proper balance between tackling these dangers and complying with international standards while not imposing an undue regulatory burden on the industry.”

While EU member states and the European Parliament have the ultimate word on proposed laws, it is unclear how these rules would be enforced.

“On the contrary, our measures will aid the development of the EU crypto-asset market by providing an updated, harmonized legal framework across the EU.”

EU nations and the European Parliament have the ultimate word on the plans, meaning it might take two years for them to become law.