The proposed changes to the EU law will ask corporations dealing in the transfer Bitcoin or any other cryptocurrencies to collect vital information from the recipient and sender.
The proposals could make crypto-assets more transparent and traceable in the future, believes the EU Commission.
Why The New Law?
This plan if enacted will certainly help curb money laundering and terrorist financing.
The new changes that EU seeks to enact will also ban the provision of anonymous crypto-asset wallets.
Proposals can take up to two years to become law.
The Commission has stated that the transfer or any sort of transaction done using cryptocurrencies should be subject to the same anti-money laundering rules as wire transfers.
What Did EU Commission Say?
“Given that virtual assets transfers are subject to similar money-laundering and terrorist-financing risks as wire funds transfers… it therefore appears logical to use the same legislative instrument to address these common issues,” the Commission said in an official statement.
While there are some crypto-asset service providers which are already under the ambit of anti-money laundering laws, these new proposals “will impose these rules to the entire crypto sector, forcing all service providers to actively engage with their customers and solicit crucial information of the parties involved in a transfer,” the Commission explained.
Uniform Rules In Crypto Sector
Under the proposals, the company that transfers the customer’s crypto-assets will be obliged to enter the users name, address, date of birth and account number, and the name of the recipient will also be a requirement.
David Gerard, author of Attack of the 50 Foot Blockchain, told the BBC: “This just applies to existing rules in crypto. This has been going on since 2019.”
