Coinbase called to actively oppose the EU amendments to the Crypto Travel Rule

Coinbase called to actively oppose the EU amendments to the Crypto Travel Rule

The management of U.S. platform Coinbase believes that the amendments to the Crypto Travel Rule could stifle innovation in the industry.

Exchange Policy Director Faryar Shirzad called on the cryptocommunity to oppose the European Union’s amendments to the Crypto Travel Rule – guidelines for international cryptocurrency transactions. The amendments require exchanges to collect, verify, and report information about non-users who use their own wallets.

The EU Parliament votes on Thursday, March 31 on modifying the Transfer of Funds Regulation. Their latest draft could significantly violate individual financial freedom, irreparably harm the cryptoeconomy, & stifle the future of innovation across the EU.
– Faryar Shirzad (@faryarshirzad) March 27, 2022

“On Thursday, March 31, the European Parliament will vote to change the remittance provision. Their latest draft could seriously disrupt individual financial freedom, cause irreparable damage to the crypto-economy, and stifle the future of innovation in the EU”, Shirzad writes.

He believes that if the Transfer of Funds Regulation is adopted, it will tighten oversight of cryptocurrency exchanges and have a negative impact on the anonymity of wallets. According to Shirzad, in addition to disclosing customer information, the new rules would require exchanges to inform “competent authorities” of every transaction by a non-customer of a wallet platform owner for an amount equal to or greater than 1,000 euros – regardless of suspicions of illegal activity.

The proposal could lead to a complete ban on transfers to proprietary wallets, although there is no evidence that such a ban would have any impact on illegal activity at all. Coinbase is asking the cryptocurrency community to respond strongly to the proposal before it is too late:

“We have precious time to act, and we need to make our voices heard. If you care about protecting individuals’ privacy and paying attention to legitimate solutions that truly address concerns about the illegal use of digital assets, now is the time to speak up and be heard. We need to speak with a united, strong voice against this proposal before it’s too late”.

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Written by Renat
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