EU agrees to strengthen control of cryptocurrencies
The European body will seek to create measures that prevent the use of cryptocurrencies for criminal activities
The negotiators of the European Parliament and the Council reached an agreement to strengthen control and transparency over cryptocurrency operations to prevent anonymous transfers and other measures that facilitate their traceability to prevent digital assets from being used for money laundering or the financing of terrorism.
The reform, which still needs the approval of the plenary session of the European Parliament and the Council to be formally adopted, will impose the “travel rule” on all transfers made with virtual currency so that operators are obliged to collect certain data from both the issuer as well as the beneficiary of the transfer made, regardless of the amount thereof, as the minimum thresholds considered for control fell during the negotiation.
“The new rules will make it easier to investigate certain transfers linked to criminal activities and to identify the real person behind those transactions,” said the rapporteur for the European Parliament on the review of this fund transfer regulation and MEP for En Comú Podem, Ernest Urtasun.
The reform also provides for specific requirements in the operations of providers with unhosted wallets so that they are obliged to verify transfers to or from their clients with one of these unregistered wallets.
Under the agreement reached, the EU will also commit to creating a public registry on cryptocurrency operators that do not respect the new rules or escape the designed control and with which European providers will not be authorized to operate.
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Source: dpa
