In an effort to regulate the cryptocurrency transactions, European Union lawmakers approved of the measures to disallow anonymous crypto trade. Though the decision is not welcomed by the industry as it throws an open challenge to the very core of cryptocurrency, i.e., privacy.
The motive of government though is not to curb innovation but to check the rising cases of money laundering and thefts in the crypto zone. It is worth mentioning that the move comes immediately after the cyber-attack that Ronin faced and resulted in a loss over $ 600 million.
This measure will definitely prove lethal for the activities of the dark web like illicit sale of drugs, arms and ammunitions, terrorist activities, etc. These activities count on Cryptocurrencies for funds largely due to the feature of anonymity provided to the users.
As reported by Coindesk, the proposal was supported by over 90 lawmakers. The proposal is meant to extend anti-money laundering (AML) requirements for all conventional payments over EUR 1,000 ($1,114) in cryptocurrency.
This implies that for anyone who is giving or receiving crypto worth EUR1000 or more in his wallet, it would be mandatory to submit the identification details. The move may thus eradicate the Decentralized and crypto Exchanges from the market if they don’t change their working style.
A self-hosted wallet is a wallet in which private keys are controlled by the individual themselves. They are in complete charge of their crypto assets and can conclude any transactions without the need of any trusted third party. On the other hand, in a custodian wallet the control of private key lies in the hands of institutions.
The measures to disallow anonymous crypto trade was highly opposed and condemned by the Members of the center-right European People’s Party (EPP).
The plan still needs the consent of both the parliament and national ministers, who meet as the EU Council, in order to change into law.
