Coinbase requested crypto world to speak out against the new EU legislation, which would alter data gathering. The exchange presented various counter-arguments to the EU’s legislation, including the fact that cryptocurrency was not the greatest method for money laundering.
Coinbase, a San Francisco-based cryptocurrency exchange, has urged the crypto world to speak out against an imminent EU vote on an amendment towards the Transfer of Funds Regulation that would harm cryptocurrencies. According to the exchange, the alteration would violate people’s privacy.
Argument by Coinbase against Transfer of Funds Amendment
Coinbase cites some of the deficiencies in the proposed legislation, claiming that this could have a significant and far-reaching influence on the crypto market. It highlighted certain misunderstandings raised during the debate over the bill. The first such misunderstanding is that Bitcoin, Ethereum, and other digital assets are the principal means of money laundering. Another claim was about a privacy breach that law enforcement is unable to follow the movements of the digital asset and the personal information gathering and verification needed by law enforcement is not a breach of their privacy.
Crypto world apprehensions
Coinbase claims that digital assets are a poor way to launder money, citing the fact that fiat currency remains the most efficient tool for criminals to disguise their unlawful behavior. It goes on to claim that enacting the amendment will lead to a new degree of privacy violation. Crypto would be treated differently from fiat currency in terms of eligibility for travel rules. New duties on exchanges to gather, validate, and disclose information on non-customers using self-hosted wallets would be the most severe of changes.
Voting on Transfer of Funds Amendment
As a result, the crypto world is being urged to oppose the proposed rule. The vote is expected to take place this week, and it could be the start of things since the EU has discussed several vulnerabilities in the cryptocurrency market. The authority recently rejected a proof-of-work ban, but it’s evident that crypto regulation is far from complete.