European Regulators Propose Law to Make Crypto Transactions Traceable

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In Brief
  • The European Commission today shared a proposed law that would make cryptocurrency transactions more transparent and traceable.

  • Under the proposed law, the names, addresses and birthdays of both those sending and receiving funds will be made available to government officials.

  • The laws are similar to those that currently prohibit having an anonymous bank account or make a wire transfer without proof of identity.

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The Trust Project is an international consortium of news organizations building standards of transparency.

European Commission officials announced on Tuesday, planned legislation to apply a “travel rule” for cryptocurrency assets. 



Officials at the European Commission are taking the recommendation of the international watchdog the Financial Action Task Force (FATF) and are tightening rules on cryptocurrency transfers. Under a new proposed law, any company that transfers cryptocurrency must collect and store details of both sides of the transaction. This includes the identity of both the senders and recipients of funds. The goal is to crackdown on money laundering via crypto assets. The law already applies to wire transfers within Europe.

Another addition to the law will prohibit the issuing of anonymous crypto-wallets, just as opening an anonymous bank account is not allowed. This is a step toward combatting money laundering in the EU according to officials. 



Changes coming to EU crypto-traders

Under the proposed law, any company that handles cryptocurrency for an individual will be obliged to provide the customer’s name, home address, date of birth, and any account numbers associated with the customer. The name of the recipient of the crypto-transfer must be disclosed.

Additionally, the recipient’s virtual asset service provider (VASP) must double-check if any information is lacking and request that it be provided. It is important to note that the VASP must only share information on VASP-to-VASP transactions over $1,000. 

In the press release, the Commission stated that “The European Commission has today presented an ambitious package of legislative proposals to strengthen the EU’s anti-money laundering and countering terrorism financing (AML/CFT) rules.”

The report goes on to say that the proposals put forth have been created to find a true balance between combating threats on the blockchain and not creating a world of over-regulation. The European Commission also states its belief that the proposed laws will not hider the cryptocurrency industry in the EU, but, will in fact benefit all parties involved

Despite the announcement today, the European Commission has to defer to EU states and EU Parliament before making anything official. That process could take anywhere from a couple of months to a couple of years. 


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Matthew De Saro is a journalist and media personality specializing in sports, gambling, and statistics. Before joining BeInCrypto, his work was featured on Fansided, Forbes, and OutKick. With a background in statistical analysis and a love of writing, he takes an outside-the-box approach to reporting news.

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