Media: EU lawmakers will vote to block anonymous cryptocurrency transactions

Media: EU lawmakers will vote to block anonymous cryptocurrency transactions

Current FATF recommendations on the regulation of cryptocurrencies and cryptocurrency service operators require companies to identify the recipient of a payment exceeding €1,000. National governments in the European Union have proposed abandoning the lower limit when extending the rules to cryptoassets, as large transactions can be broken down into smaller ones – a practice known as “smurfing”.

Officials propose conducting identity checks on transactors and de-anonymizing all cryptocurrency transactions, regardless of their size. Internal parliamentary documents reviewed by CoinDesk show a high probability that members of the European Parliament’s Economic Affairs Committee will support the amendment and vote to end the anonymity of even small cryptocurrency transactions.

Lawmakers are willing to include the movement of cryptoassets between non-hosted cryptocurrency wallets in anti-money laundering (AML) regulations, despite uncertainty about how this procedure can be enforced. 

Deputies would also require cryptocurrency service providers to refrain from making or facilitating any transfers that carry the risk of money laundering or crime. It is proposed to limit or prohibit cryptocurrency transfers from the EU to any place that falls under EU sanctions or is considered a tax haven, such as offshore locations in the US, the Virgin Islands, Turkey, Russia or Hong Kong.

Recall that on March 15 amendments to the law on strengthening measures to prevent money laundering and terrorist financing came into force in Estonia. The update makes Estonia’s regulatory regime for digital asset platforms even stricter than the general EU rules.

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Written by Renat
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