The rules and regulations mentioned in the bill have seen far more criticism and controversy, yet it was passed in the recent session
Earlier today, Lawmakers at the European Union voted in favour of some measures that were considered to be controversial as they had the potential to outlaw anonymous crypto transactions. Industry experts said this is a move that would feel suffocating for innovative technology and a step towards invading privacy.
As per the sources, more than 90 lawmakers voted in favour of the proposal. The presented proposal intended to extend anti-money laundering requirements (AML) that apply a conventional set limit of payments over 1000 EUR, that is, $1,114 in crypto.
The new regulations proposal included compartmentalization of the crypto payments floor as such payers and recipients involved in even the smallest crypto transactions would have been identified. Such identification would include transactions with self hosted or non hosted wallets. Apart from this, several measures under discussion would see if unregulated crypto exchanges amputate from the traditional financial system.
In December, national governments said that they wanted to scrap the EUR 1000 gateway for crypto because digital payments could easily avoid the limit. That would also include the private wallets that regulated crypto asset providers are not operating. However, as said earlier that the proposal was considered to be controversial. It can be seen as the opposition of the bill by centre right European People’s Party members.
The economic spokesperson of EPP, Markus Ferber, stated that such proposals are neither proportionate nor warranted. The approach to regulating these new technologies could fall the European union far behind other nations or countries with more open minded jurisdictions.
Another separate legal proposal consisted of stopping transfers that are being made to crypto service providers that are non compatible. Such firms would include those which are operating in the European Union without having any authorizations or else that is not established or affiliated in any jurisdiction.
There were objections from several major participants in the industry, including Coinbase and legal experts who warned about the privacy violations considered overly heavy handed and could face challenges legally in courts of the European Union.
The CEO of the exchange firm posted a tweet possessing a warning tone that after the new rules, Coinbase would need to report authorities every time a customer receives crypto worth more than EUR 1000 from a self hosted wallet.
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Source: https://www.thecoinrepublic.com/2022/04/01/why-is-the-recently-passed-crypto-bill-considered-controversial-and-privacy-busting/