The European Union’s upcoming law will require crypto exchanges to track all user transactions, a move that is non-beneficial for global crypto development
PayBito CEO Raj Chowdhury made a statement criticizing the European Union’s decision to remove the element of anonymity from cryptocurrency transactions, explaining how the law removes a feature instrumental behind crypto’s global success in an unjustified manner.
More than 90 lawmakers in the European parliament voted in favor of removing the anonymity features from cryptocurrency exchanges. Once enforced, failing to comply with the aforementioned law may also lead to an ouster from traditional European financial services, especially for non-regulated crypto exchanges.
The law decrees anti-money laundering(AML) requirements as mandatory for crypto sector payments exceeding 1000 Euros. In addition, each digital asset exchange must monitor and keep track of each crypto transaction within its jurisdiction including the non-hosted or self-hosted wallets.
Latest Fintech News: Dwolla Launches Virtual Account Number Feature to Streamline Payment Workflows
The Paybito Chief, a noted blockchain pioneer, expressed his views on the potential upcoming European crypto law. In an online conference, he stated “The European Union’s illogical decision to strong-arm and force digital asset exchanges to track transactions may backfire and prove to be a hindrance for crypto adoption across Europe.”
The reason behind the law’s proposed enactment is perceived as the EU’s attempts to regulate and keep tabs on crypto transactions. It is easy to bypass any threshold limit with digital payment methods, or include digital assets kept in non-regulated private wallets. However, stored crypto-assets can be easily tracked using the cryptocurrency’s blockchain architecture, making it the worst option for money launderers. Law enforcement agencies worldwide have recovered most of the ransom crypto amounts stashed away by hacker groups, leading to their apprehension.
“Blockchain and cryptocurrencies are ushering in a new era of digital transformation forcing nations around the world to take notice and design frameworks for their implementation. The European Union’s proposition of regressive law stands as an obstacle for technological progress,” mentioned Raj Chowdhury, who had earlier spoken on exchange security and the impact of crypto on global payments processing.
Latest Fintech News: Crediclub Chooses Cyberbank From Technisys to Embrace Digital Transformation
The Chowdhury-led PayBito is a US-based cryptocurrency exchange comprising cutting-edge features prioritizing the protection of client assets and KYC/AML requirements. The exchange made major changes this year, including 41 digital assets in its listing and updating its UI/UX design. PayBito recently offered white label solutions of its native exchange architecture to a global bank in the Middle East.
The proposed EU law will come into effect after getting a majority vote from each participating nation within the union. Enforcement of transparency is one of the key characteristics of the underlying blockchain technology. An additional law may serve as a setback.
Latest Fintech News: WCCU Chooses Lumin Digital To Provide Enhanced Digital Banking Services
[To share your insights with us, please write to sghosh@martechseries.com]
