Some MEPs are trying to hold a vote that, if successful, would ban anonymity in crypto transactions.
Who do you send cryptocurrency to?
MEPs are expected to schedule a vote next week that, if successful, will ban anonymous transactions. Basically, this means that you must be able to prove at all times who you are sending crypto to, even if it is a transaction to a non-custodial wallet (where you manage your own private key).
Holland is doubtfully ahead
This is similar to what Wopke Hoekstra implemented during his tenure as Minister of Finance of the Netherlands. Here, crypto platform users must prove where they are sending their coins, with a screenshot of the recipient’s wallet. A complete farce, of course, because after that you can send the coins anywhere. The Americans have a fancy term for this: anti-customer.
Assita Kanko, one of the main lawmakers responsible for drafting parliament’s positions, also said on Tuesday that she wants to extend the measures to include private crypto assets, despite uncertainty over how to enforce transactions between non-custodial wallets.
the amount doesn’t matter
CoinDesk writes that the amount also does not matter whether or not you are allowed to send an anonymous transaction. And that’s special to say the least, as the threshold for an international bank transfer is €1,000.
Guillaume Valette-Valla, head of Tracfin, the French anti-money laundering organization, said that crypto transactions are being used to finance terrorism in Syria and Iraq and child pornography in Southeast Asia. He also told lawmakers in the European Parliament that even those who make small payments online should be forced to reveal their identities. Small anonymous transactions should not be allowed, he added.
Exclude countries from transactions
The European Parliament is expected to go a step further by excluding certain jurisdictions from crypto transactions. For example, consider that you cannot send bitcoins to a former fellow student in Poland. This is completely impossible in all respects and totally inapplicable by Europe, but other than that.
These would be jurisdictions that have been identified as risky in the field of money laundering and other illegal activities. These measures may include requiring crypto service providers not to allow transactions to certain countries. For various reasons you can think of the United States, the United Kingdom, Turkey, Russia, Hong Kong, Iran and the Cayman Islands.
Lots of news about countries and cryptocurrencies.
Regardless, this week has been an eventful week for crypto regulation. We write several articles on how countries want to deal with cryptocurrencies. A selection of newspapers (read: our website):
- Malaysia excludes bitcoin as legal tender for now
- Russia accepts bitcoin for oil and gas
- India to impose a 30% tax on cryptocurrency transactions from April 1
- Bitcoin is not legal tender in Honduras and the IMF forces Argentina to abandon the cryptocurrency
- Deferred Bitcoin Bonds in El Salvador
- Thailand wants to ban cryptocurrency transactions
Additionally, the Governor of Florida said that his state would soon accept corporate cryptocurrencies for tax payments. A committee in the US Senate has approved a bill that would call on federal agencies to mitigate the risks associated with accepting Bitcoin as legal tender in El Salvador, which is pending a vote in the Senate.