Controversial EU Cryptocurrency Law Unsettles Crypto Community -Breaking
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Crypto Community is Unsettled by Controversial EU Cryptocurrency Act- A proposal was passed by the EU Parliament that is worrying many people in cryptocurrency.
- This proposal would allow crypto service providers to collect personal information from unhosted wallets.
- Many prominent figures in cryptocurrency are calling this a privacy breach.
The European Union’s parliament approved rules targeting non-custodial and unhosted wallets on March 31. Both The Committee on Economic and Monetary Affairs and The Committee on Civil Liberties, Justice and Home Affairs reached an agreement on the anti-money laundering rules for cryptocurrency.
The new rules require cryptocurrency service providers to collect personal details of anyone who transacts over €1,000 of cryptocurrency using unhosted wallets. Otherwise, a transaction wouldn’t be allowed. These transfers were traceable to help identify any suspicious transactions.
Unhosted wallets refer to addresses owned by people and not crypto exchanges. Financial Crimes Enforcement Network and the Financial Action Task Force use this term.
Twitter was used by two European Parliament members to share their views on the subject (NYSE:). Markus Feber said that a ban on the matter would not be necessary and in no way be disproportionate. On the other hand, Paul Tang says the rule isn’t a ban but rather a verification process.
One of the worst aspects of EU policies is their reliance on optics.
— Patrick Hansen (@paddi_hansen) April 1, 2022
Paolo Ardoino, Bitfinex’s CTO, expressed disappointment at the rejection of his proposal. In a thread of tweets, Ardoino said that the law wasn’t for consumer protection but rather a step back for human rights.
1 – We are disappointed to see that today’s self hosted wallet proposal passed. However, we hope that the final vote regarding the report will include consideration of privacy and security issues that may occur should it be enacted.
— Paolo Ardoino (@paoloardoino) March 31, 2022
Similarly, Coinbase (NASDAQ:) Chief Executive Officer and Co-Founder Brian Armstrong, in a thread of tweets, spoke of how the rule was “anti-innovation, anti-privacy, and anti-law enforcement” before urging people to contact members of the parliament.
1. The EU Parliament will vote, on 31 March 2018, on the proposal for a crypto surveillance program. The proposed proposal is anti innovation, anti privacy, and anti law enforcement. Make your voice heard and contact your member here: https://t.co/b3Ll3xXiW4
— Brian Armstrong – barmstrong.eth (@brian_armstrong) March 30, 2022
One of the most prominent voices of this issue comes from Unstoppable DeFi’s Head of Strategy and Business Development Patrick Hansen. Hansen has written numerous threads about the new law.
1 – I do not like to sound the alarm yet, but this time the EU Parliament is forced to act. The draft relates the crackdown on unhosted bitcoin wallets within the crypto AML Regulation (TFR). It will be up for a vote on Thursday by the ECON Committee.
— Patrick Hansen (@paddi_hansen) March 26, 2022
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