EU Policymakers Unveil Plan To Regulate Bitcoin and Crypto Transactions

bitcoin computer motherboard scaled

EU policymakers are discussing a plan to increase regulatory oversight of the emerging cryptocurrency industry.

A new proposal from the European Commission (EC) would require businesses to maintain records of the name, address, date of birth and account number of clients as they move cryptocurrency from one wallet to another.

The rules are designed to identify the senders and recipients of crypto transactions, mirroring the know-your-customer and anti-money laundering requirements used when customers wire money from one bank account to another.

“The crypto-asset service provider of the originator must ensure that transfers of crypto-assets are accompanied by the name of the originator, the originator’s account number, where such an account exists and is used to process the transaction; and the originator’s address, official personal document number, customer identification number or date and place of birth; the crypto-asset service provider of the originator must also ensure that transfers of crypto assets are accompanied by the name of the beneficiary and the beneficiary’s account number, where such an account exists and is used to process the transaction.

The crypto-asset service provider of the beneficiary must implement effective procedures to detect whether the information on the originator is included in, or follows, the transfer of crypto-assets. The crypto-asset service provider of the beneficiary must also implement effective procedures, including, where appropriate, ex-post monitoring or real-time monitoring, in order to detect whether the required information on the originator or the beneficiary is missing.”

A press release from the EC says the proposal aims to ensure “full traceability” of senders and recipients as businesses move crypto on behalf of their clients.

“At present, only certain categories of crypto-asset service providers are included in the scope of EU AML/CFT (Anti-Money Laundering and Countering the Financing of Terrorism) rules. The proposed reform will extend these rules to the entire crypto sector, obliging all service providers to conduct due diligence on their customers. Today’s amendments will ensure full traceability of crypto-asset transfers, such as Bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing. In addition, anonymous crypto asset wallets will be prohibited, fully applying EU AML/CFT rules to the crypto sector.”

At this point in the process, the European Parliament and Council is examining the proposal. The Commission says it looks forward to a “speedy” legislative process.

“The future AML Authority should be operational in 2024 and will start its work of direct supervision slightly later, once the directive has been transposed and the new regulatory framework starts to apply.”

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Liu zishan

The post EU Policymakers Unveil Plan To Regulate Bitcoin and Crypto Transactions appeared first on The Daily Hodl.

Ronnie Huss

Ronnie Huss

Leave a Reply

Your email address will not be published. Required fields are marked *

Share:

Share on telegram
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Related Posts

bitcoin
Bitcoin (BTC) $ 67,338.04
ethereum
Ethereum (ETH) $ 3,749.14
tether
Tether (USDT) $ 0.999280
bnb
BNB (BNB) $ 594.43
solana
Solana (SOL) $ 168.90
staked-ether
Lido Staked Ether (STETH) $ 3,747.19
usd-coin
USDC (USDC) $ 1.00
xrp
XRP (XRP) $ 0.522822
dogecoin
Dogecoin (DOGE) $ 0.164753
shiba-inu
Shiba Inu (SHIB) $ 0.000027
cardano
Cardano (ADA) $ 0.451607
the-open-network
Toncoin (TON) $ 6.46
avalanche-2
Avalanche (AVAX) $ 36.39
chainlink
Chainlink (LINK) $ 18.53
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 67,322.04
polkadot
Polkadot (DOT) $ 7.17
tron
TRON (TRX) $ 0.112051
bitcoin-cash
Bitcoin Cash (BCH) $ 465.87
near
NEAR Protocol (NEAR) $ 7.63
uniswap
Uniswap (UNI) $ 10.49
matic-network
Polygon (MATIC) $ 0.718278
litecoin
Litecoin (LTC) $ 83.54
pepe
Pepe (PEPE) $ 0.000015
internet-computer
Internet Computer (ICP) $ 12.13
fetch-ai
Fetch.ai (FET) $ 2.19
leo-token
LEO Token (LEO) $ 5.95
dai
Dai (DAI) $ 0.999387
wrapped-eeth
Wrapped eETH (WEETH) $ 3,893.71
ethereum-classic
Ethereum Classic (ETC) $ 30.41
render-token
Render (RNDR) $ 10.26
aptos
Aptos (APT) $ 9.11
dogwifcoin
dogwifhat (WIF) $ 3.79
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,708.61
hedera-hashgraph
Hedera (HBAR) $ 0.103244
cosmos
Cosmos Hub (ATOM) $ 8.68
arbitrum
Arbitrum (ARB) $ 1.15
immutable-x
Immutable (IMX) $ 2.22
kaspa
Kaspa (KAS) $ 0.137305
mantle
Mantle (MNT) $ 0.993438
filecoin
Filecoin (FIL) $ 5.80
crypto-com-chain
Cronos (CRO) $ 0.116719
stellar
Stellar (XLM) $ 0.106894
the-graph
The Graph (GRT) $ 0.311081
first-digital-usd
First Digital USD (FDUSD) $ 0.998117
ethena-usde
Ethena USDe (USDE) $ 1.00
blockstack
Stacks (STX) $ 1.94
okb
OKB (OKB) $ 45.81
optimism
Optimism (OP) $ 2.52
bittensor
Bittensor (TAO) $ 396.91
floki
FLOKI (FLOKI) $ 0.000269