EU Proposes Ban on Anonymous Crypto Wallets

The European Commission (EC) has introduced a set of legislative proposals aimed at strengthening the fight against money laundering and terrorist financing within the European Union. Among the new rules is a proposed ban on anonymous crypto asset wallets.

The EC believes that crypto asset transfers should be subject to the same anti-money laundering regulations as traditional bank transfers. “Transfers of virtual assets are exposed to the same risks of money laundering and terrorist financing as bank transfers. Therefore, it seems logical to use the same legislative tools to address common issues,” the Commission stated.

New Requirements for Crypto Transfers

According to the proposals, any company transferring a client’s crypto assets will be required to provide the client’s name, address, date of birth, and account number, as well as the recipient’s name. The European Commission believes these amendments will ensure full traceability of crypto asset transfers, such as Bitcoin.

“If you want to make real money, you have to follow the rules of real money,” BBC quoted David Gerard, author of the book “Attack of the 50-Foot Blockchain.” In his view, this is simply the application of existing rules to cryptocurrency.

Potential Impact on the Crypto Market

At the same time, the European Commission’s recommendations could affect cryptocurrency prices. The ability to make anonymous payments is one of the reasons for their popularity.

“It looks like anonymous crypto wallets have come to an end in the major crypto market,” summarized Sarkis Darbinyan, head of the legal practice at Roskomsvoboda.

However, enforcing a ban on the use of anonymous crypto wallets will be extremely difficult, as identifying their owners would require significant time and resources, according to one source interviewed by Kommersant.

Next Steps

For these proposals to become law, they must now be approved by EU member states and the European Parliament.