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The European Unions New Crypto Rule Prohibits Anonymous Wallets And Requires Senders To Reveal Their Names And Addresses

A new EU legislation will oblige companies that transmit bitcoin or other cryptocurrencies to maintain information about the sender and recipient of the digital funds in order to prevent them from being used in crimes.
The European Commission has suggested a new rule to detect suspicious transactions and activities, which has always been a concern with cryptocurrencies due to the secrecy of digital wallets.
The legislation focuses on the creation of a new central authority, the Anti-Money Laundering Authority, which will oversee a single integrated system across all 27 nations.
The Commission said in a statement that it “will provide 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.”
It went on to say that “anonymous crypto asset wallets will be forbidden.”
In order to make it more difficult to launder big sums of dirty money, the commission has set a restriction of EUR10,000 on significant cash contributions.
Businesses that deal with cryptocurrencies will now be required to ask for a customer’s name, address, date of birth, and account number, as well as the names of those who will receive the digital funds.
The ideas must be approved by the European Parliament and EU member states, which may take up to two years to implement.
China, like the EU, has taken a stand against bitcoin transactions.
Although the country mines roughly 70% of the world’s bitcoin, banking institutions and payment businesses are prohibited from providing services connected to cryptocurrency transactions.
In the wake of the revelation, bitcoin’s price dropped 10% to $31,333 in June 2021, close to half its peak of almost $65,000 in April.
The move marked a significant turnaround from China’s position in 2019, when a state-run newspaper lauded bitcoin as the first successful application of blockchain technology on the front page and the country was prepared to establish its own digital currency.

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