EU Targets Privacy Coins and Wallets in AML Crackdown

[ad_1]

EU Targets Privacy Coins and Wallets in AML Crackdown

Expected to be unveiled this week, these changes are part of a broader three-year process. 

Aimed at updating the EU’s rules on combating money laundering and terrorist financing in the financial sector. Let’s explore more about it.

Privacy Coins and Wallets Under Scrutiny

Three key amendments are expected to be introduced under the Anti-Money Laundering Regulation (AMLR):

  • There will be a ban on crypto mixers, tools that facilitate the blending of cryptocurrencies to enhance privacy.
  • Users of self-custody wallets will face restrictions on their payment capabilities. This will limit the degree of anonymity associated with such wallets.
  • The EU plans to intensify tracking of crypto transfers, enhancing its ability to monitor and regulate transactions.

Notably, the new regulations will also target privacy coins, which offer enhanced anonymity features. The outright ban on privacy coins aligns with the EU’s broader efforts to increase transparency in the crypto space.

According to a source, these amendments come as part of a coordinated effort with the Markets in Crypto-Assets regulation (MiCA). The combined impact of AMLR and MiCA represents a comprehensive regulatory framework. It wants to address the evolving challenges posed by cryptocurrencies in the financial sector.

Consequences of EU Banning Privacy Coins and Wallets

One of the anticipated consequences for various crypto entities will be the heightened requirements for user due diligence. These platforms will need to implement more robust mechanisms to verify the identities and activities of their users.

While the specifics of when the AMLR law will come into force are still under negotiation, projections suggest a timeline between 2026 and 2027. The key challenge for crypto advocates lies in ensuring that the AMLR aligns seamlessly with the regulatory clarity established in MiCA.

Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.

 



[ad_2]

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *