The EU is expected to fail terribly in its fight against bitcoin: ‘There’s no way I’m going to succeed!’
THE EU has launched a fight on bitcoin and other cryptocurrencies, but a political commentator recently predicted that the bloc will fail horribly.
Companies that transfer bitcoin or other crypto assets must collect information on senders and recipients to aid authorities in their attempts to combat dirty money, EU policymakers said on Tuesday in the latest attempt to regulate the sector. The European Commission’s proposed law would apply the so-called “travel rule” to crypto transactions in order to make them traceable. Wire transfers are already subject to the law, which is one of the recommendations of the Financial Action Task Force (FATF), an intergovernmental watchdog.
“Today’s revisions will enable full traceability of crypto-asset transfers, such as bitcoin, and will allow for the prevention and detection of their prospective use for money laundering or terrorism financing,” the Commission said in a statement.
It is no secret that the European Union’s institutions are anti-cryptocurrency.
Frank Elderson, a member of the European Central Bank’s executive board, stated on Twitter earlier this year: “Crypto-assets are volatile.”
“They have no intrinsic value and are backed by no credible institution.”
Furthermore, at the beginning of January, Christine Lagarde, the President of the European Central Bank, stated that “there has to be regulation” when it comes to bitcoin.
However, in a recent analysis, Wolfgang Munchau, the president of Oxford-based think-tank Euro Intelligence, outlined why the EU’s battle on bitcoin will backfire spectacularly.
“You can always recognize hypocrisy when someone predicts that a specific event will not occur, then demands for rule modifications to ensure that it does not occur,” he wrote. For example, suppose you predict that inflation will not be an issue and then argue for an inflation target that is overshot.
“The same can be said for the European crypto-debate: why be concerned if you believe bitcoin is a bubble that will eventually burst?”
“Yesterday, the European Commission urged that Europe follow Vladimir Putin’s lead and regulate crypto – as part of its new anti-money-laundering rules,” Mr Munchau continued.
“What this means is that they’re concerned.
“What we know for sure is that they can’t possibly succeed.”
People will use off-shore wallets that are not subject to EU restrictions, according to the political commentator.
“The EU, like the Russians, cannot stop anonymous online transactions,” he concluded.
“Brinkwire Summary News,” according to “The.”