The European Parliament and the Council of the EU have previously agreed that they will force cryptocurrency providers to provide identifying information on all transfers of digital assets. The decision was made despite opposition from the crypto industry. This was reported by Bloomberg.
The so-called money transfer regulation should strengthen the fight against money laundering. It guarantees tracking of cryptocurrency transfers and blocking of suspicious transactions.
The agreement means that exchanges must receive information and personal data about all cryptocurrency transfers, regardless of their size, and provide this information to authorities upon request. Liability also applies to so-called serverless wallets, which are not managed by a licensed exchange or service provider, when transferring more than €1,000.
More than 40 crypto companies in April sent a letter to EU finance ministers, protesting the new rules. They stated that this violates the privacy and security of users. Signatories included exchanges such as Coinbase and ETP providers Coinshares International and Valor.
Today, the European Parliament, the Council of the EU, and the European Commission will hold a final round of negotiations on the regulation of cryptocurrency asset markets to resolve any remaining disagreements.
Let us remind you that recently the President of the European Central Bank Christine Lagarde declared, that cryptocurrencies are “based on nothing”. They need to be regulated to keep people from speculating.