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EU Set to Vote for Important Cryptographic AML Clauses – Coinbase Quotes Total Ban on Non-Cryptographic Wallets ⋆ ZyCrypto

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  • On Thursday, the EU will vote on the controversial crypto AML draft.
  • Coinbase and industry players are calling on the public to pressure lawmakers to change their minds.
  • If the draft is passed, it will do significant harm to the early European markets with little or no benefit in the fight against crime.

Experts like Coinbase and Patrick Hansen have called on the public to oppose recent draft crypto AML regulations that could violate privacy rules and compromise user security. According to Hansen, the draft will be voted this Thursday.

Draft CryptoAML Regulations and Industry Concerns

The EU has reportedly reviewed the Money Transfer Regulations (TRF) and added new cryptographic provisions to limit the use of digital assets for money laundering. However, players in the industry feel that the new draft is not only harmful to user privacy and security, but also harmful. Also, there are no effective restrictions on money laundering.

Drafts suggest that cryptocurrencies provide malicious individuals with good opportunities for money laundering and illegal transactions. To counter these perceived risks, EU lawmakers have proposed in the latest policy draft that central exchanges not only collect but also verify identities of users of private or self-hosted wallets. Percentage of users who trade with them and report all transactions over € 1000.

In a recent blog post by Paul Grewal, Coinbase’s Chief Legal Officer, he explains that cash continues to be the preferred means of money laundering, contrary to popular belief. Use advanced analysis tools.

“If this amendment is adopted, it will unleash the entire oversight of exchanges like Coinbase, curb innovation, and undermine the self-hosted wallets that individuals use to secure their digital assets. “

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In the post, Grewal made it clear that the EU’s liability for exchanges under such provisions is almost unrealistic, except to endanger user data. Most exchanges will prefer to stop trading with private wallets. Tweet:

“As a result, imo will not be able or able to trade with unhosted wallets for most crypto companies to maintain compliance.”

Possible results

Grewar said in his post that these provisions violate many EU regulations on privacy and fair market competition. In addition to this, Hansen reveals in a tweet that there are no real obstacles for actors who intend to launder money. Tweet read:

“Money launderers can unlamp from the exchange to their validated wallet and from there they can start interacting with the first person they want to do. It just introduces another step.”

Hansen revealed that odds seem to be piled up against the crypto industry this time and may not work as well as the vote on PoW digital asset bans. As Hansen speculated, such regulations undermine local cryptographic services, trample on user privacy, put users at risk of hacking, and do not affect the fight against money laundering.

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