In connection with the regulation of cryptocurrencies and their extraction, China has been mentioned in recent months, where there have been extensive restrictions, mainly for miners, but also for users of digital names.
In Europe, in addition to restrictions and warnings for Binance, which has problems all over the world, fortunately, similar steps or proposals are not being made at present, but the European Union has been working for some time to reduce the money laundering that is often associated with cryptocurrencies.
According to the new proposal European Commission, as reported by the Agency Reuters, companies in charge of transferring cryptocurrencies and other digital assets will need to collect data on shippers and recipients to help authorities take action against fraudsters.
Transfer providers will need to collect customer data
This rule, which is one of the recommendations of the intergovernmental regulator, the Financial Action Task Force (FATF), already applies to bank transfers.
Service providers making cryptocurrency transfers will thus have to collect data such as the name, date of birth and address of the sender, as well as his account number and the name of the recipient together with his account information. At the same time, the proposal obliges the service provider of the recipient of the cryptocurrencies to check whether any of the required information is missing.
As the portal writes CoinTelegraph, companies must collect this information when the transfer exceeds EUR 1000, or when it appears to be a series of payments with a final amount exceeding EUR 1000. In this case, however, there must be a suspicion that this money will be paid in cash or by anonymous means and used for money laundering or terrorist financing.
The Commission allegedly does not want to take this step to “reduce the effectiveness of cryptocurrency transfers”, but at the same time to balance the risk of fraudulent transactions and transfers financing terrorist organizations.
According to the document, the proposal also prohibits the provision of anonymous cryptocurrencies, as is the case with anonymous bank accounts, which have been banned in the EU for some time.
The law may take up to two years to come, but EU banks are already imposing restrictions
However, it should be recalled that this proposal will still be commented on by the EU Member States and the European Parliament, which must then approve it. The date on which it becomes a regulation may ultimately be up to two years.
Not even the fall ruined the optimists’ smile. The date for bitcoin to dominate global finance is approaching
However, we have only recently witnessed a curious situation in the neighboring Czech Republic, where Air Bank and Raiffeisen Bank International, respectively, blocked their clients’ investments in cryptocurrencies.
According to Raiffeisen, the reason was the fear of “money laundering”, while UniCredit Bank has already taken a similar step. IN this article We therefore brought you statements from Slovak banks, which we asked if we could expect similar steps in our country.