The European Union’s lawmakers voted in support of controversial legislation that would make anonymous crypto transactions illegal, a move that the industry said would stifle innovation and invade privacy.
The proposal aims to expand anti-money laundering requirements that apply to conventional transfers of more than EUR 1,000 ($1,114) to the crypto sector. It also raises the standard for crypto payments, requiring payers and receivers of even the smallest crypto transactions to be recognised, even those using non hosted or self-hosted wallets. Further measures under consideration might cut off unregulated crypto exchanges from the traditional banking system.
National governments said in December that they wanted to remove the EUR 1,000 barrier for cryptocurrency. They also allow private wallets that are not operated by crypto asset providers.
Many of the most contentious amendments were rejected by members of the center-right European People’s Party (EPP), who condemned what they termed a “de facto ban on self-hosted wallets.”
A further legislative proposal, also discussed today, would prohibit transfers to “non-compliant” crypto service providers, which include those operating illegally in the EU or those not affiliated with or established in any jurisdiction.
