The European Commission has set out new legislative proposals to make crypto transfers more traceable.
While the plans will close some existing loopholes, the impact on cyber crime is likely to be minimal, experts say.
The European Commission (EC) has set out new legislative proposals to strengthen its anti-money laundering (AML) and countering terrorism financing (CFT) rules to tackle financial crime. A key element of those proposals includes changes to make crypto asset transfers more traceable and secure by forcing companies to collect certain details on recipients and senders and prohibiting the use of anonymous cryptocurrency wallets.
In a press release announcing the legislative proposals, the EC explains how the new laws would enhance traceability of cryptocurrency and why the scale of the problem warrants such action.
“At present, only certain categories of crypto asset service providers are included in the scope of EU AML/CFT rules. Today’s amendments will ensure full traceability of crypto asset transfers, such as Bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing,” the EC writes. “In addition, anonymous crypto asset wallets will be prohibited, fully applying EU AML/CFT rules to the crypto sector.”