European Union legislators have voted in favor of new legislation aimed at robbing cryptocurrency dealers of their anonymity across Europe. Members of the European Union’s Committees on Economic and Monetary Affairs (ECON) and Civil Liberties (LIBE) endorsed the proposed modifications to the Transfer of Funds Regulations on Wednesday, with 93 votes to 14 votes and 14 recorded absentees.
Whereas the anonymity of the cryptocurrency realm has been appealing to many of its users, it is a cause of concern for international governments, along with the volatility of the tokens. Some governments have openly prohibited the use of cryptocurrency; however, others have resorted to rules, some more stringent than others.
Members of the European Union Parliament expressed worries during the plenary session about the possibility of the digital asset’s extreme volatility having a negative impact on existing financial stability, as well as its anonymity, which facilitates criminal activity.
Crypto exchanges will be required to gather and report information about the parties involved in each bitcoin transaction under the new regulations. “It would be easier to identify and report suspicious activities, freeze digital assets, and discourage high-risk transactions,” said Ernest Urtasu, a Spanish Green Lawmaker.
The proposed revisions would require “unhosted wallets” to record transactions, with competent authorities alerted of any transaction involving more than €1000.
It’s important to mention that, following the bill’s final draught on Monday, Coinbase, a cryptocurrency trading platform, expressed concerns that the newly proposed revisions will usher in an era of stringent surveillance, potentially putting an end to crypto innovation.
Following the events of yesterday, Brian Armstrong, the company’s CEO, took to Twitter to level harsh remarks at the European Union. ” This eviscerates all of the E.U’s work to be a global leader in privacy law and policy. It also disproportionately punishes crypto holders and erodes their individual rights in deeply concerning ways. It’s a bad policy.” he said.
Government organizations will be “personal data honeypots” and targets of cyberattacks, according to Patrick Hansen, Head of Strategy at Unstoppable Finance.
These revisions must still be accepted and signed into law by the European Union Council, which is made up of national ministers, who will meet next week to discuss the bill.