Two days after, the EU will vote in favour of new provisions that will be introduced in the anti-money laundering laws of the nation.
At present crypto trading is fully legal in the EU, and people are allowed to use cryptocurrencies-related activities with full freedom under existing National Rules but due to the availability of the self custodial wallet services, crypto use in money laundering and terrorist funding is still active. So EU lawmakers are working to find out possible solutions.
Last week’s reports noted that the EU is now going to revisit to its Transfer of Funds Regulation (TRF) law to add more provisions to fight against -money laundering or illegal funding because of the involvement of the use of cryptocurrencies. The vote in favour of the same will take place on the Thursday of this week.
The majority of the crypto proponents are claiming that upcoming new provisions will not harm the crypto industry negatively but surely will put some impact on the crypto companies, to comply with the new provisions.
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Under the proposed draft, it identifies that crypto assets are the best instrument for the bad actors to facilitate transactions illegally. Under the new provisions, it will impose a new rule on the crypto Exchanges to monitor and verify the crypto transactions of the users collected funds from the respective source, whether self-custodial or non Custodial wallets matter.
So if drafted proposals will get introduced in TRF then the Crypto exchanges will ask for all the details of funds collection. In particular, exchanges will be required to monitor & report the transactions in crypto assets above €1000.
Paul Grewal, chief legal officer at Coinbase exchange, noted through a recent blog that cash will always favour Laundering and also noted that cryptocurrencies are better at detecting and monitoring illegal funding.
Grewal added:
“If adopted, this revision would unleash an entire surveillance regime on exchanges like Coinbase, stifle innovation, and undermine the self-hosted wallets that individuals use to securely protect their digital assets.”
Read also: Mandela Museum sold arrest warrant NFTs for $130,000
This week EU may pass draft to introduce new provisions for AML laws
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https://bitcoinik.com/this-week-eu-may-pass-draft-to-introduce-new-provisions-for-aml-laws/feed/
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