European Union lawmakers met Thursday and cracked down on crypto. Soon authorities will be granted access to details on sender and recipient crypto transfers in the EU.
The EU vote was on a revised anti-money laundering (AML) legislation. The proposal will require crypto exchanges to share details of their customers’ anonymous transactions. Additionally, “unheated wallets” such as MetaMask, will require KYC.
The crypto industry has been a much debated topic recently. Earlier this month an EU proposal making Bitcoin and Ethereum illegal was rejected. EU lawmakers have been discussing regulations for a while now. Therefore, the current ruling doesn’t come as a surprise. However, it does go against what crypto is all about; decentralization.
The EU to Start a Crypto Regulation Trend
Crypto exchange Coinbase Global Inc. has warned lawmakers about surveillance disrupting innovation. Crypto is a $2.1 trillion industry. The laws differ throughout the world, however, more regulation has entered the space.
The EU commission regulations imposed only apply to transfers over 1,000 Euros. The lawmakers want to make it easy to report suspicious transactions and freeze digital assets.
What this means is that anonymous transactions will cease to exist. In a statement, the EU Commission said “these proposals have been designed to find the right balance.” The EU must comply with international standards, but also doesn’t want to create a regulatory burden on the industry.
The European Union states have the final say on any proposals. This means it could take two years for this to become law. It is a fine line between trying to ensure financial fair play, and not overreaching with surveillance.