European Union: all cryptocurrency transactions soon to be monitored?
When most governments had yet to establish their regulation of blockchain and cryptocurrencies a few years ago, legislative control ranged greatly. The policy ranges from the issuing of national cryptocurrency to its absolute prohibition. There is still considerable uncertainty in some jurisdictions, emphasizing the field’s dual character. However, the European Parliament’s Committee on Economic and Monetary Affairs (ECON) is considering a new proposal.
What is going on?
The Economic and Monetary Affairs Committee (ECON) of the European Parliament will vote on March 31 on improvements to legislation governing the exchange of information between counterparties when transferring payments. Unstoppable Finance development manager Patrick Hansen noted that the idea will include gathering data on users of non-custodial crypto wallets. According to Hansen, the initiative attempts to put the FATF road rule into effect. It then compels suppliers of digital-asset-related services, such as exchanges and custodial services, to disclose client information when sending transactions.
Tracking of transaction
Moreover, the EU is going to record the transaction of more than 1,000 euros and information about their counterparts according to the new regulation. The ECON Commission, on the other hand, wants to do away with this upper limit for cryptocurrencies and gather all possible data. In other words, each cryptocurrency transaction conducted through a regulated service would have to be accompanied by information on both participants. In turn, they would be made available to authorities. The plan also calls for the gathering of data on the transaction history.
EU prohibits PoW mining
In January 2022, the leadership of a financial regulator proposed a ban on mining bitcoin and other cryptocurrencies using the Proof-of-Work algorithm in the EU. Because of the high energy consumption, EU officials should prohibit the mining of bitcoin and other cryptocurrencies using the Proof-of-Work algorithm. Eric Teden, the vice-chairman of the European Securities and Markets Authority, claimed this (ESMA). Without the intervention of regulatory authorities, he believes that an increasing percentage of green power will be used to produce digital assets rather than to replace carbon-based energy sources.
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