transfer companies Bitcoin or other cryptocurrency Under the new EU rule, information about the sender and recipient of digital funds will be required to be maintained to prevent them from being used in crimes.
The legislation focuses on a new central authority, the Anti-Money Laundering Authority, which will establish a single unified system of supervision in 27 countries.
This will “ensure the full traceability of crypto-asset transfers such as bitcoin, and allow the prevention and detection of their potential use for money laundering or terrorism financing”, the commission said in a release. “Anonymous crypto asset wallets will remain banned”, it added.
The Commission has also placed a €10,000 limit on large cash payments, to make it harder to launder large amounts of dirty money.
Companies handling cryptocurrencies will now have to ask for the name, address, date of birth and account number of the customer, as well as the people receiving the digital funds.
The European Parliament and EU states must approve the proposals, which means they could take up to two years to be implemented.
Along with the European Union, China has taken notorious crackdowns against cryptocurrency transactions. The country accounts for about 70 percent of the world’s cryptocurrency mining, but Banned financial institutions and payment companies from providing services related to cryptocurrency transactions.
In June 2021, the price of bitcoin fell ten percent to $31,333 — close to its peak of nearly $65,000 in April — in the wake of the news.
This move was a remarkable change from its attitude in 2019, Where a state-run newspaper introduced bitcoin on the front page as the first successful application of blockchain technology, and China was once Preparing to launch its own digital currency.