By 2024, the European Commission plans to outlaw anonymous cryptocurrency wallets completely. There had previously been whispers on the internet regarding the European Union’s impending “suppression” of digital currencies, and they appeared to be genuine.
The primary objective of EU legislators’ invention is to halt the enormous amounts of unlawful cash that cybercriminals send in cryptocurrency equivalents.
To that aim, they recommended tightening the approach to crypto-assets by gathering information on money senders and receivers as part of Bitcoin and other digital currency transactions. Additional information such as the residence, date of birth, and further details may be asked.
In principle, this will aid law enforcement authorities in tracking down and attempting to launder criminal cash. But, on the other hand, even though the FBI in the United States has expressed concern about the difficulties of tracing transactions in the crypto realm, it is unclear how the European Union intends to carry out its strategy.
Meanwhile, officials of the European Commission believe that the legislative changes would allow for “complete traceability” of cryptocurrency payments in Bitcoins and prompt correction of serious infractions such as money laundering and terrorism funding.
Based on the EU AML/CFT regulations, which now apply to the cryptocurrency industry, members of the European Commission also declared that all anonymous crypto wallets would be outlawed. The agency plans to use the travel rule for the new asset class. It has long been a part of the FATF’s conventional asset finance rules.
This collection of crypto industry regulations was created to strike a compromise between tackling key risks and conforming to established international standards without imposing a regulatory burden on the whole sector. The advances were described in this way in the official paper. It also claims that, due to the EU legislative framework’s renovation, all of these measures will offer extraordinary advantages and harmony to the sector.
We believe you have probably predicted how the crypto community reacted to politicians’ unbridled confidence. In other words, the regulators have another more reason to “love” their representatives.