The majority of the leading committees in the European Parliament have passed a measure prohibiting anonymous cryptocurrency transactions conducted via hosted crypto wallets. This measure is part of the EU’s broader anti-money-laundering (AML) and counter-terrorism-financing legislation.
March 19 saw the approval of new anti-money-laundering laws, which place restrictions on anonymous cryptocurrency transfers and cash transactions. The new regulations outlaw, among other things, the use of anonymous cash transfers in commercial transactions over €3,000 and, more specifically, cash payments above €10,000.
Regarding cryptocurrency wallets provided by third-party service providers, including centralized exchanges, the prohibition on anonymous crypto transactions by the European Parliament is applicable only to these types of wallets.
One of only two lawmakers to vote against the prohibition, German Pirate Party MEP Patrick Breyer says it violates people’s right to financial autonomy and privacy. The right to be anonymous while making financial transactions is a basic human right, according to Breyer, who also thinks the restriction will hurt innocent people financially while doing nothing to reduce crime.
Card blocking is a real possibility due to the demise of cash, negative interest rates, and the unpredictable manipulation of the money supply. There is a frightening rise in reliance on banks. “This kind of financial incapacitation has to cease,” Breyer said (in a news statement he issued to justify his stance; Google translated it from German).
As for the European Union’s “war on cash,” Breyer is worried about the repercussions, such as negative interest rates and the possibility that banks could shut off the money supply. The need of safeguarding the ability to make online donations and payments anonymously, as well as bringing cash’s finest features into the digital age, were his main points.
The reaction of the crypto community to the regulatory actions taken by the EU has been somewhat varied. Despite concerns that they would limit economic activity and invade personal privacy, others see the new AML legislation as essential.
This is according to Daniel “Loddi” Tröster, presenter of the Sound Money Bitcoin Podcast; he bases his assertion on the latest legislation’s effects on contributions and the wider ramifications for cryptocurrency usage in the EU.
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