European bill would force to identify all transactions with bitcoin

The European Commission is proposing a regulatory adjustment so that all transactions with bitcoin (BTC) and other cryptocurrencies are not only traceable, but also identifiable with user data. The agency is pushing for all digital asset providers to apply the so-called” travel rule ” to operations.

The “travel rule” is that all transactions that exceed a set amount, for example 1,000 euros, they must record the data of the sender and receiver of the funds. This information must contain: first and last names, amount and date of the transaction, physical address of both participants, date of birth and number of associated accounts, all as a KYC or “Know your customer”control.

In this case, exchanges in all their modalities whether centralized, decentralized, custody services or P2P platforms must comply with the regulation. The European Commission would tighten measures with the premise of combating money laundering and terrorist financing (AML/CFT).

“At present, only a few categories of crypto asset service providers fall within the scope of the European Union’s AML/CFT standards. The proposed reform will extend these rules to the entire cryptocurrency sector, forcing all service providers to apply due diligence to their customers, ” the commission said.

Tighter regulation on Bitcoin

The legislative adjustment that the organization seeks to establish follows the financial Action Task Force (FATF)guidelines. This organization has in the past issued suggestions for countries and other institutions to establish stricter regulations regarding the bitcoiner ecosystem, a fact reported by CriptoNoticias.

According to the European Commission, the implementation of such legislation “will ensure full traceability” of cryptocurrency transactions. In this same regulatory line, the commission also wants anonymous cryptocurrency wallets to be banned.

Transactions confirmed per day on the Bitcoin network during the last year. Source: blockchain.com.

On this point the authorities would look for is that, if a person is going to make a withdrawal from an exchange, for example, the user must provide previously the address to which the funds are destined. That is, each operator you could only withdraw funds to the addresses provided and not to any address from BTC.

It is important to mention that the traceability of transactions with bitcoin, for example, is one of the characteristics by nature of your network. Any person, entity or regulatory body can monitor the operations of its users.

It is now up to the European Parliament and the member states of the union to determine whether legislation is appropriate or rejected. In any event, the discussion and possible adoption of the proposal could be extended for two years.

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