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Privacy-busting crypto rules approved by the European Union Parliament despite industry criticism

Lawmakers are planning measures that could see unregulated exchanges shut down and ending even the smallest anonymous crypto transactions.

EU lawmakers have made the decision to impose measures against anonymous crypto transactions. This move has been criticised by the industry calling it an invasion of privacy and a hindrance to innovation.

According to CoinDesk over 90 lawmakers voted in favor of the proposal.

The current proposal aims to expand anti-money laundering (AML) laws to the crypto sector, that will apply to payments exceeding EUR 1,000 ($1,114).

The new proposal will require even small crypto transaction to be identified as well as transactions occurring from unhosted or self-hosted wallets. In addition to this, unregulated exchanges may face major issues as they could be cut off from the traditional financial system.

According to Markus Ferber, th European People’s Party economic spokesperson, “Such proposals are neither warranted nor proportionate,” and “With this approach of regulating new technologies, the European Union will fall further behind other, more open-minded jurisdictions.”

In addition to this transfers made to “non-compliant” crypto exchanges will be stopped. This includes exchanges operating in the EU without the necessary authorisation to do so.

Photo by Lianhao Qu

About the author, Leyla Ozturk

Leyla Ozturk, lifelong learner currently immersed in the digital world and the way businesses can step into this world. Deeply fascinated by blockchain, cryptocurrency and the whole Fintech ecosystem. All 3 areas have proven that there are issues within the system, there are ways to improve the system and this disruption is needed for economic growth and improvement.

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Estonian Crypto Licenses is a trading name of TechIuris OÜ, a company based in Tallinn, Estonia and specialised in legal and compliance solutions for European FinTech companies. We are a fully licensed company, and EVEA and e-Residency marketplace members. Here on our blog, we share the latest news on topics such as NFTs, cryptocurrencies, blockchain and much more.

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