The European Commission (EC) has presented a series of proposals aimed at more strictly regulating trCryptocurrency transfers based on existing anti-money laundering and anti-terrorist financing laws.
One of the main changes is the a ban on all cryptocurrency service providers from offering anonymous cryptocurrency wallets. Existing anti-money laundering rules would be extended to the entire cryptocurrency industry, including all crypto-asset service providers.
"The changes will ensure traceability complete transfers of crypto-assets, such as bitcoin, and will prevent and detect their possible use for money laundering or terrorist financing purposes. In addition, anonymous crypto-asset wallets will be banned, ”says the EC.
Current EU rules do not cover the traceability of virtual asset transfers
Providers will need to collect name, address, official personal document number, number customer identification or date and place of birth of cryptocurrency holders.
“At present, only certain categories of crypto-asset service providers are included in the scope of. 'application of EU rules on combating money laundering and terrorist financing ", explains the CE in a press release . “The proposed reform will extend these rules to the entire cryptocurrency industry, requiring all service providers to exercise due diligence with their customers.
The prCryptocurrency Opposition describes the future obligations of all virtual asset service providers "to collect and make available data regarding the donors and recipients of virtual or crypto asset transfers that they operate
The European Commission is concerned that the differences in anti-money laundering and terrorist financing legislation between EU member countries are being exploited by organized crime for money laundering and terrorist financing. "Virtual asset transfers are now outside the scope of EU financial services legislation," the proposal says. "The absence of such rules leaves crypto-asset holders at risk of money laundering and terrorist financing." "
Current EU rules do not cover the traceability of transfers ofVirtual assets and information sharing obligations between cryptoasset service providers, as current EU rules only apply to wire transfers, she adds.
The end of anonymity?
Cryptoasset service providers must ensure that transfers of cryptoassets are accompanied by the name of the donor. 'order, the account number of the ordering party, when such an account exists and it is used to process the transaction, she specifies.
Among other information that cryptoasset service providers will need to collect in order to transfer cryptoassets are the originator's address, official personal document number, customer identification number, or date and place of birth.
On the beneficiary's side, the cryptoasset service provider "must implement effective procedures to detect whether the information on theare included in or derive from the transfer of cryptoassets. ”
These rules will remain proposals, until the European Parliament votes in favor of the amendments.