European Union lawmakers on Thursday voted in favor of an extension of anti-money laundering (AML) requirements that would effectively end anonymous transactions involving cryptocurrencies such as Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE).
What Happened: The proposals approved by the EU are aimed at extending AML requirements that apply to payments over 1,000 euros ($1,114) to cryptocurrencies, according to a report from CoinDesk.
The proposals were supported by more than 90 lawmakers, while members of the center-right European People’s Party (EPP) opposed the changes saying it was a “de-facto ban” on self-hosted wallets, as per the report.
Coinbase (NASDAQ:COIN) Global Inc (NASDAQ: COIN) CEO Brian Armstrong called the proposals “ anti-innovation, anti-privacy, and anti-law enforcement” in a Twitter (NYSE:TWTR) thread on Thursday.
Armstrong said the proposals mean that “before you can send or receive crypto from a self-hosted wallet, Coinbase will be required to collect, store, and verify information on the other party, which is not our customer, before the transfer is allowed.”
6/ Imagine if the EU required your bank to report you to the authorities every time you paid your rent merely because the transaction was over 1,000 euros.See Also: How To Buy Bitcoin (BTC)— Brian Armstrong - barmstrong.eth (@brian_armstrong) March 30, 2022
Why It Matters: The provisions will eliminate the lower limit for cryptocurrency payments, which means payers and recipients of even the tiniest amounts of cryptocurrencies would need to be identified — including those people that use unhosted or self-hosted wallets, reported CoinDesk.
Simon Lelieveldt, a former policy analyst at the Dutch central bank, said in relation to the EU's approach that “No way this will stand up over time, but in 15 years' time a lot of damage can be done still."
Earlier in the month, the EU’s Parliament’s Committee on Economic and Monetary Affairs voted down a bill that would outright ban proof-of-work cryptocurrencies such as Bitcoin and Ethereum. Had that measure passed, the multinational body would have effectively banned such cryptocurrencies on its territory.
The latest measures by the EU must be approved by both parliament and national ministers, who meet in the EU Council, according to CoinDesk.
Price Action: At press time, over 24 hours, Bitcoin traded 4.2% lower at $45,081.82, Ethereum traded 3.2% lower at $3,277.66, and Dogecoin traded 3.8% lower at $0.14, according to Benzinga Pro data.
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