European Commission proposes ban on anonymous crypto transfers

Companies would have to collect data on the recipients and senders of cryptocurrency transfers to combat money laundering. The recommendations are contained in a European Commission draft bill prepared in accordance with FATF recommendations, according to Reuters.

The document envisages the integration of the ‘travel rule’.

“The amendments will ensure full traceability of transfers of digital assets. They will also help prevent and detect possible uses of them in money laundering or terrorist financing,” the statement said.

Providers of crypto-asset services will be required to record the sender’s name, address, date of birth and account number, as well as the recipient’s identification details. The service associated with the recipient must verify that all the necessary information is available.

Anonymous cryptocurrency transfers will be banned.

Currently these requirements apply to bank transfers.

“The proposals strike a balance between removing threats and adhering to international standards, without imposing an excessive regulatory burden on the industry. The Commission said approving the amendments would support the development of the digital assets sector by delivering a refreshed harmonised regulatory framework across the EU,” the Commission said.

The publication estimates approval could take two years, given the need to coordinate the process with the European Parliament and all EU member states.

Earlier in June, FATF urged accelerated implementation of new rules for the crypto industry.

Subscribe to ForkLog news on Telegram: ForkLog Feed — full news feed, ForkLog — the most important news, infographics and opinions