European Union Takes Action for Tougher Measures in Crypto Transfers

A vote will be held in the EU Parliament today on the revision of the Fund Transfer Regulation concerning crypto assets. If this revision is accepted unanimously, more stringent measures will be put into effect for Bitcoin and altcoin transfers.

While the crypto money markets are worth over $ 2 trillion in 2022, the authorities have started to accelerate their actions to control the industry in light of concerns that Bitcoin and altcoins may threaten financial stability and their use in illegal activities may increase.

Officials of Coinbase, one of the largest exchanges in the crypto industry, think that with this decision, the European Union will hinder the progress of the industry and undermine the external wallets that investors use to securely protect their crypto assets.

This revision proposal, which was first brought to the agenda last year, includes crypto exchanges to obtain, store and report the information of the parties to the transfers.

MEPs of the European Parliament who support the resolution think it can thus be effective in deterring high-risk transactions by detecting suspicious transactions. The commission first determined the transaction limit to be reported as 1,000 euro, and then this lower limit amount was removed. The reason for the removal of the lower limit is the possibility of users to bypass these measures with the ability to make unlimited transfers.

The European Parliament has agreed that the overhaul on crypto transfers will cover not only crypto exchanges, but also crypto wallets and crypto asset service providers owned by individual investors.

Criticizing the decision to be voted today, Coinbase (NASDAQ:COIN) officials say that cash is used more than crypto money in criminal transactions. In addition, they argue that the information planned to be collected about external wallets will lead to a privacy violation and argue that the decision should be abandoned.

Paul Grewal, Coinbase Chief Legal Officer, offers a solution to the issue, arguing that law enforcement can use advanced analytical tools to track crypto money transfers, whose records are permanently stored on the Blockchain.

The European Union Parliament recently voted on a law that would restrict the mining activities of crypto assets within the EU borders, but the bill was not passed by a majority of votes.

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