End of anonymity in cryptocurrencies?
European Union lawmakers have voted in favour of outlawing anonymous crypto transactions. This happened also among worries from regulators about 2 trillion dollars crypto sector. According to reports, 90 lawmakers voted in favour of the proposal. If or when it will be taken, it means that it will take the anonymity from the crypto world. The reason why they are deciding for this are worries about the possibility of cryptocurrencies upsetting the stability of financial markets worldwide.
The bill itself will require crypto exchanges to obtain, hold and submit information on those, that are involved in transfers. Changes would also bring tighter AML regulations (Anti-Money Laundering), as payers and recipients of any amount of crypto would have to meet AML requirements – until now they were limited to 1.000 € and higher. Extra measures, that are currently being discussed are that some of the unregulated exchanges would be cut off from the conventional financial system.
There are also members, that were against this move, as it could destroy the innovation that was first meant with cryptocurrency and invade the privacy of users. Despite many members in the parliament opposing the changes, it could still bring volatility to the market and with that offer trading opportunities.
Comparison of privacy between different crypto. (Source: Master The Crypto)
Sources:
https://www.reuters.com/world/europe/eu-lawmakers-back-new-tracing-rule-crypto-transfers-2022-03-31/
https://dailycoin.com/eu-lawmakers-push-to-tighten-laws-on-crypto-transfers-and-anonymity/
https://masterthecrypto.com/privacy-coins-anonymous-cryptocurrencies/
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