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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.
PALO ALTO, Calif., April 9, 2022 /PRNewswire-PRWeb/ — 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.
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…
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