On Tuesday, the European Commission disclose A proposal to ban the use of “anonymous encrypted asset wallets” as part of its fight against financial crimes.
The committee stated that the proposal would extend EU anti-money laundering and counter-terrorism financing (AML/CFT) rules to the crypto industry because “currently only certain types of crypto asset service providers” are subject to these rules.
“Today’s amendment will ensure the full traceability of the transfer of encrypted assets such as Bitcoin,” the European Commission said, “and will allow the prevention and detection of their possible use in money laundering or terrorist financing.”
This announcement was made shortly after the announcement by the British police Confiscate As part of an ongoing money laundering investigation, cryptocurrency worth approximately US$408 million. Similar businesses may also exist in the European Union and other regions.
More information about the changes is available at The latest version of (PDF) Regulation 2015/847/EU. Many of the changes just made specific references to encrypted assets in existing regulations without making further changes.
However, there are some noteworthy additions. For example, for transactions that lack traditional payment account numbers and identifiers, “other methods are required to ensure that the transfer of encrypted assets can be individually identified, and the initiator and beneficiary address identifiers are recorded in the distributed ledger. Up”.
The amendment also stated that “the requirements of this Regulation shall apply to the transactions of crypto asset service providers. […] Involving traditional wire transfers or crypto asset transfers involving crypto asset service providers. “
These requirements include:
“The originator’s encrypted asset service provider shall ensure that the transfer of encrypted assets is accompanied by the originator’s name, the originator’s account number (if such an account exists and is used to process transactions), as well as the originator’s address, official personal identification number, and customer identity Certificate number or date and place of birth. In addition, the originator’s encrypted asset service provider should also ensure that the transfer of encrypted assets is accompanied by the beneficiary’s name and beneficiary’s account number, where such accounts exist and are used to process transactions.
Similar requirements were made to the beneficiary’s service provider, but in the opposite direction. (This means that these service providers must ensure that all relevant information is provided by the initiator’s service provider.)
The BBC reported that the proposal must be approved by EU member states and the European Parliament before it can become law. According to the report, this process may take up to two years, which gives people time to prepare for these changes.