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EU Legislators May Vote to Ban Anonymous Crypto Payments

Members of the European Parliament are preparing for a historical vote the coming week. This event could mean the end of anonymous crypto transactions.

EU Could Enforce Several Restrictions

According to new reports, EU legislators could block transfers to flagged jurisdictions and enforce ID  check on all crypto transactions.

Urged on by Russia’s increased focus on crypto to evade financial restrictions, lawmakers worldwide are reviewing regulations with renewed intensity. The European Union has not fallen behind in this global movement. The possible success of the upcoming vote will translate into a lot of changes for EU crypto users.

Additionally, the vote could also restrict transactions to non-custodial wallets. Speculations abound that the parliament will bar EU users from conducting exchanges with flagged regions. They may include the United States, Russia, the UK, Hong Kong, Turkey, the Cayman Islands, and others.

The EU sees these regions as danger zones in terms of fraud, money laundering, and other illegal financial activities. To evade the risk, the EU may also explicitly bar crypto service providers from interacting with these regions. 

Furthermore, the proposed measures are likely to apply regardless of the quantity of crypto transactions.

The present regulatory framework only enforces this for transactions scaling $1,099. However, the Union’s governments have supposedly sighted a loophole. To evade the prescribed limit, crypto users could divide the funds and conduct smaller transactions. The term for this is “smurfing.” 

Crypto Under Regulatory Fire

This development comes shortly after the EU shot down a drafted bill proposing a ban on proof-of-work protocols. For the moment, the focus appears to have shifted from sustainability.

Unlike the PoW Ban, anti-money laundering officials spearhead the current Anonymous-ban vote. These authorities have called attention to the role of virtual assets in bolstering terrorism and child abuse. What is more, the majority of the EU legislators seem to acknowledge the ruling is unavoidable. As it draws nearer, the success of the opposition seems more and more possible.

In recent months, the focus on crypto regulation has increased considerably. Unsurprisingly, the trend is still going strong. The past week featured a ton of developments along this line within the crypto space. One was the Florida’s government intentions to accept tax payments in cryptocurrency.

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On Wednesday, Thailand announced a ban on crypto transactions starting next month and the Indian government has established a tax system for cryptocurrencies. These are only a few among several others, all featuring varying degrees of severity.

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