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The European Union Has Proposed Legislation To Ensure Full Traceability Of Cryptocurrency Transfers And To Prohibit Anonymous Wallets Regulation Bitcoin News

The European Commission has proposed legislation to “ensure full traceability of crypto-asset transfers, such as bitcoin,” in order to prevent and identify “their prospective use for money laundering or terrorism financing.” Also, “anonymous crypto asset wallets will be forbidden.”
The suggestions take into account “new and emerging issues linked to technical innovation,” such as “virtual currencies, more integrated financial flows in the Single Market, and the worldwide character of terrorist organizations,” as well as “new and emerging challenges linked to technological innovation,” such as “virtual currencies, more integrated financial flows in the Single Market, and the global nature of terrorist organizations,” according to the Commission.
The formation of a new “EU-level Anti-Money Laundering Authority (AMLA)” is at the heart of the proposed legislative package. It will be “the central authority coordinating national authorities to guarantee the private sector accurately and consistently executes EU standards.” The measures also include “complete implementation of the EU AML/CFT rules to the crypto sector,” according to the commission.
The changes apply to the whole industry, “obliging all service providers to do due diligence on their customers,” according to the European Commission. “Today’s amendments will enable full 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 funding,” the European Commission said.
In implementing comprehensive EU AML/CFT laws to the crypto sector, the notification emphasizes that: Anonymous crypto asset wallets will be forbidden.
“Anonymous bank accounts are already outlawed by EU AML/CFT laws,” according to the Commission. The legislative package will now be debated by the European Parliament and Council.
“The future AML Authority should be operational in 2024, and its direct supervision activity will begin slightly later, once the Directive is enacted and the new legal framework takes effect,” the European Commission concluded.
What are your thoughts on the ideas made by the European Commission?
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