European lawmakers voted to introduce new legislation designed to stop illegal flows, despite industry’s claims that the measures will stifle innovation and violate privacy.
- The proposal requires service providers to collect information on senders and beneficiaries in all transactions and give it to authorities upon request.
- The minimum threshold for transactions is removed and transfers involving private wallets are subject to the mandate.
- The EU plans to extend rules from traditional payments that obligates the validation of collected information for transactions over EUR $1,000.
- The EU’s work to be a global leader in privacy law and policy was eviscerated by the proposal, according to Brian Armstrong, the CEO of Coinbase.
- The global crypto markets were down roughly 2% by early Friday morning, with Bitcoin falling around 3.2%, according to CoinGecko data.
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