EU Policymakers wants to Tighten Regulations of Cryptocurrency Transfers
The European Commission (EC), which is the executive arm of the European Union (EU), has submitted a proposal calling for stricter regulation of anonymous cryptocurrency wallets and transactions.
The major purpose of this proposal is to prevent the further propagation of money laundering and terrorism financing activity within the European Union.
the Commission would extend to crypto the Financial Action Task Force's called “travel rule” to crypto transactions as well, making them more traceable. The rule itself is already being applied to wire transfers in the EU and is part of the Financial Action Task Force’s recommendations.
That is service providers conducting transfers must have the name of the originator of the transfer, the account number, where the account exists, and where it is used to process the transaction and The originator’s address, official personal document number, customer ID number, date and place of birth would also be required under the proposal.
“These proposals have been designed to find the right balance between addressing these threats and complying with international standards while not creating an excessive regulatory burden on the industry,” according to the Commission’s proposal.
