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HomeENTERTAINMENTEU plans to propose law to end cryptocurrency laundering • ENTER.CO

EU plans to propose law to end cryptocurrency laundering • ENTER.CO

In order to end the anonymity of cryptocurrencies, the European Parliament and the Council of the European Union reached an agreement with cryptocurrency providers. Both offices plan to force digital asset companies to provide them with sufficient information about the transactions carried out by investors.

With this measure, the entities hope, in addition to solving the ‘laundering’ through cryptocurrencies, to prevent the movements from being anonymous and untraceable by the corresponding authorities. So with this Transfer of Funds Regulation (TFR), cryptocurrency providers must store the data of their investors; In case the authorities require it, they must provide information about the sender and the recipient of the transactions. However, the TFR must go through a process to be definitively applied.

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The entities clarify that the data must be collected regardless of the amount of the transaction; according to the European Union, it is because “the speed and virtual nature” of such movements “easily circumvent existing rules based on transaction thresholds”

As reported by Bloomberg, the crypto asset providers did not like the measure very much. More than 40 companies dedicated to this virtual sector, including Coinbase, sent a letter to the EU economy ministers to comment on the reason for their discontent. Of course, the main reason is that by reporting the transactions of their users, they would be going against the basic principles of cryptocurrencies: decentralization. In addition to considering that the measures would put the privacy of its clients at risk; Faced with this last concern, the EU assured that it will guarantee data protection, once the project comes into operation. However, the Funds Transfer Regulation has to go through a series of filters to be approved

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