EU cryptocurrency crackdown: The bloc is planning additional red tape as the United Kingdom is urged to embrace new technology.
THE EU has proposed a set of restrictions to stifle the growth of Bitcoin technology within the bloc.
Brussels wants to outlaw private bitcoin wallets in order to prevent “money laundering or terrorism financing” by ensuring “complete traceability” in transactions. Cryptocurrency wallets are often anonymous and can be created without the assistance of a third party, such as a bank. The EU now wants to end the anonymity of digital wallets, which is one of the most important aspects of the Bitcoin revolution.
Another strategy used by the EU is to prohibit cryptocurrency payments between crypto-wallets that exceed 10,000 euros (£8562).
“We shouldn’t have multiple standards for the financial system,” EU financial services commissioner Mairead McGuinness said during a press conference on Tuesday.
“They should also apply to digital currencies.”
The European Parliament and the European Council would have to adopt the new ideas.
After that, the EU hopes to establish a new anti-money laundering authority to keep track of bitcoin transactions.
The EU’s so-called Anti-Money Laundering Authority aims to employ a single integrated system to oversee cryptocurrency transactions across the board, and it will be established by 2024 if the EU parliament and council agree.
According to a press release from the European Commission, the new agency “will enable full traceability of crypto-asset transfers, such as Bitcoin.”
“It will allow for the prevention and detection of their probable use for money laundering or terrorism financing,” the statement stated.
The move comes as the City of London embraces cryptocurrency advancements, with Xavier Rolet, the former CEO of the London Stock Exchange, urging post-Brexit Britain to take advantage of the cryptocurrency boom and lure the “best brains” to the capital.
Mr Rolet writes in a recent blog post that the UK needs to comprehend cryptocurrencies in the post-Brexit period in order to position the City of London and the country at the center of a “reputable and safe” financial industry.
“Doing so will not be easy, none of this stuff is,” he wrote in the blog post.
“However, being well-positioned is critical; otherwise, the bitcoin market will pass the UK by.”
The UK government has been encouraged to aid the City of London in creating “crypto-assets” for cryptocurrencies such as Bitcoin and Ethereum, according to a new research by financial analysts.
According to the report, the UK government and regulators should take advantage of Brexit and the prospects created by the rapid rise of. “Brinkwire Summary News.”