EU Parliament Passes Privacy-Busting Crypto Rules Despite Industry Criticism

Apr 03, 2022

EU Parliament Passes Privacy-Busting Crypto Rules Despite Industry Criticism

European Union legislators voted last week in support of highly controversial legislation prohibiting anonymous cryptocurrency operations, a measure the sector argued would slow innovations and infringe on personal privacy.

As files obtained by CoinDesk show, over 90 MPs voted to support this measure.

The initiatives seek to implement anti-money laundering regulations that already apply to traditional transfers over EUR 1,000 to the cryptocurrency industry. Additionally, they eliminate the floor for cryptocurrency operations, requiring payers and receivers of even the tiniest digital assets transfers to be verified, even those using unhosted or self-hosted accounts.

Furthermore, the proposed restrictions could isolate unregulated cryptocurrency trading platforms from the traditional banking system.

In December, national governments announced plans to eliminate the EUR 1,000 floor for cryptocurrencies, citing the ease with which digital assets can evade the restriction, and to add to this private wallets not maintained by licensed cryptocurrency providers.

Members of the center-right European People's Party (EPP) spoke out against a number of the most problematic reforms, calling them a "de facto prohibition on self-hosted wallets."

"Such suggestions are neither reasonable nor proportional," EPP economics spokesman Markus Ferber stated Thursday. "With this regulatory approach to emerging technology, the EU will slip farther behind more open nations."

Another legislative initiative being debated last week would prohibit transactions to "non-compliant" cryptocurrency service providers, including those functioning in the EU without authorization or those not linked with or established in any jurisdiction.

While prominent crypto market players, such as Coinbase, and legal experts had expressed concerns that excessively harsh privacy enforcement might face litigation in European courts, the decision on Thursday still stood.

Coinbase would be required to notify regulators if a client acquired more than EUR 1,000 in cryptocurrency via a self-hosted wallet under the new legislation, the exchange's CEO Brian Armstrong said in a Twitter post on Wednesday.

For the measures to enter into law, both the parliament and national ministers in the EU Council must approve them.

Immediately after the decision, bitcoins fell nearly 2% in price, from $47,500 to $46,400.

Subscribe Our Newsletter

A Growing Possibility of Fed Rate Cuts for 2024

Nato

Fed Rate Cuts for 2024: Anticipation Builds as Fed Signals Potential Rate Reduction

The Federal Reserve hints at potential Fed rate cuts for 2024, with officials showing a division over the timing and necessity of such measures.

Asia’s Big Winter Power Switch Averted As Inventories Expand
Asia’s Big Winter Power Switch Averted As Inventories Expand

Mild temperatures and the replenishing of fossil fuel supplies have helped to alleviate fears of an energy shortage in Asia this winter, bringing some relief before the coldest time of the season.

Banks and Finance
B2BROKER Liquidity B2BROKER Liquidity
Sponsored
Liquidity Provider

Market Maker Vs Liquidity Provider: Key Differences
Let's find out what is a market maker, what is the role of liquidity provider, what are Tier 1 and Tier 2 liquidity providers and their differences.

discover
Core Liquidity Providers

Constantine

The Nature of Core Liquidity Providers: Who Are They and What is Their Feature?

Get an idea of core liquidity providers, their features, types, and main functions in trading markets.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiriesb2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Hazem

    MetaTrader vs cTrader: Which Trading Platform Shall You Choose?

    MetaTrader vs cTrader: The Full Breakdown

    Сonstantine

    Will Dogecoin Reach $1? Tokenomics and Price Analysis

    Will Dogecoin Reach 1 Dollar Analysis

    Сonstantine

    How to Get a Crypto Exchange License?

    How to Get Crypto Exchange License

    Сonstantine

    Best Crypto to Buy Now: Guide for Investors

    Best Crypto To Buy Now

    Hazem

    Grok vs ChatGPT: What’s the Best AI Assistant You Need in 2025

    Grok vs ChatGPT

    Сonstantine

    How to Choose the Right Liquidity Provider for Your Brokerage

    How to Choose the Right Liquidity Provider for Your Brokerage

    Сonstantine

    Low-Latency Trading Defined: Speed, Strategy and Technology

    Low-Latency Trading Explained

    Hazem

    How Liquidity Depth Affects Slippage in High-Volume Trading

    Liquidity depth and slippage in trading

    Hazem

    What is FIX API Liquidity Connection and How Does it Power Institutional Trading?

    FIX API in institutional trading

    Сonstantine

    OTC Trading Strategies and Technologies to Succeed in Over-the-Counter Markets

    OTC Trading Strategies

    Alexander

    What is OTC Trading? A Complete Guide for 2025

    what is OTC

    Alexander

    Synthetic Futures: A Trader’s Guide to Replicating Positions with Options

    How to Trade Synthetic Futures

    Сonstantine

    Order Book Depth: What It Is And Why It Matters?

    Order Book Depth What It is And Why It Matters

    Alexander

    Spot vs Perpetual Futures: Which Is Right for You?

    Spot vs Perpetual Futures explained

    Hazem

    5 Reasons Traders Are Switching to Perpetual Futures

    5 Reasons to Switch to Perpetual Futures

    Constantine

    Top 3 Liquidity Challenges Facing New Exchanges and How to Solve Them

    Top 3 Liquidity Challenges Facing New Exchanges Today

    Constantine

    Financial Planning in the Cryptocurrency Era — Master Crypto and Digital Asset Strategies

    Financial Planning in the Cryptocurrency Era

    Hazem

    Best Platforms to Trade Perpetual Futures in 2025

    Best platforms to trade perpetual futures in 2025

    Alex

    Top 10 Fintech Website Development Agencies for 2025

    Best Fintech Website Development Agencies for 2025

    Сonstantine

    Internal vs External Range Liquidity In ICT Trading Explained

    Internal vs External Range Liquidity In ICT Trading

    Constantine

    Portfolio Backtesting — Tools, Metrics, and Methods Explained

    Portfolio Backtesting

    Сonstantine

    ICT Trading Explained: Smart Money Concepts, Tools and Setups

    ICT Trading Explained

    Сonstantine

    CFD Trading Strategies: A Practical Guide to Risk and Execution

    CFD Trading Strategies

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.