European Commission proposes to ban anonymous cryptotransactions
Companies should collect data from recipients and senders of cryptocurrency transactions to combat money laundering. Such recommendations are contained in the European Commission's draft law prepared in accordance with FATF recommendations.
The document envisages the integration of the Travel Rule.
"The amendments will ensure full traceability of digital asset transfers. They will also prevent and detect possible cases of their use in money laundering or terrorist financing," the statement said.
Cryptocurrency service providers will be required to record the name, address, date of birth and account number of the sender as well as the name of the recipient. The linked service will have to verify that all the required information is in place.
Anonymous transfers of cryptocurrencies will be banned.
Currently, similar requirements apply to bank transfers.
"The proposals create a balance between eliminating threats and complying with international standards, without placing excessive regulatory burdens on the industry. Approval of the amendments will support the development of the digital asset industry through the emergence of an updated harmonised regulatory framework across the EU," the European Commission said.
The publication estimates that it could take two years for the bill to be approved. The reason is the need to coordinate the process between the European Parliament and all EU member states.
In June, the FATF called for an acceleration of FATF implementation.
Tether Wallet is a stablecoin with a claimed value where 1 USDT equals 1 US dollar. Tether Limited, the centralized authority of USDT, has the ability to print tether and therefore is claiming to print something equivalent to US dollars.