Unlike traditional currencies, what happens around the world has a dramatic impact on cryptocurrencies. In the latest crypto asset regulation news, actions in the European Union are creating ripples in how other countries may begin to handle cryptocurrency transfers.
Attempts to Decrease Anonymity
The EU has developed a proposal that would impact companies that transfer any type of cryptocurrencies or crypto assets. The proposal calls for the increased data collection on identifiers and information on those sending and receiving cryptocurrencies.
The European Commission has developed a “travel rule” that requires the movement of cryptocurrencies to become traceable to attempt to reduce the use of crypto coin in moving illegal or “dirty” money. This travel rule is identical to the current rule accepted and used by the Financial Action Task Force in the monitoring of the movement of money through wire transfers.
In statements provided to crypto asset regulation news, the European Commission reports this proposal will assist in detecting and preventing the use of cryptocurrencies for terrorism or for money laundering, a concern that has a global impact.
In addition to identifying information about the sender and receiver, the companies handling the cryptocurrency transfer cannot provide any form of anonymous cryptocurrency wallets, something that has been possible up to this time.
If the proposal moves forward, and crypto asset regulation news seems to indicate this will happen, it can take up to two years to implement the proposal and create the laws specific to this amendment.