More On: Bitcoin
The European Union is adopting a heavy-handed approach that might change the way cryptocurrencies work and severely limit the independence and privacy of those who use digital assets such as Bitcoin.
What Happened: The European Commission has published a proposal that would force cryptocurrency service providers, such as cryptocurrency exchanges, to collect personal information whenever their customers transfer cryptocurrency to an external wallet.
Customers would be required to disclose originator and beneficiary information if this law were to be adopted anytime the exchange processes a transaction originating from or directed to an unhosted wallet, such as a mobile wallet, a hardware wallet, or a web 3.0 wallet like Metamask.
Furthermore, the digital asset service provider would be required to determine whether the transaction in question should be refused, halted, or reported to competent authorities on a "risk-sensitive basis."
In a Sunday Twitter Inc. thread, Coinbase Gobal Inc's chief policy officer Faryar Shirzad stated that the legislation "may drastically violate individual financial freedom, irrevocably hurt the cryptoeconomy, [and] hinder the future of innovation across the EU."
According to Simon Lelieveldt, a former policy analyst at the Dutch central bank who now specializes on crypto laws, "if you want to undermine privacy, this is the easiest way to do it." "There's no way this will hold up over time," he concluded, "but a lot of damage can still be done in 15 years."
** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.