31 March The Committee on Economic and Monetary Affairs of the European Parliament (ECON) will vote on amendments to the regulation on the exchange of information between counterparties when transferring funds. The proposal involves the collection of data on users of non-custodial cryptocurrency wallets, warned Unstoppable Finance Development Manager Patrick Hansen.

According to Hansen, the measure is aimed at implementing the FATF “road rule”. The latter obliges digital asset service providers such as exchanges and custodial services to share information about their customers when transmitting transactions.

The European Parliament is currently discussing the proposed amendments. Hansen emphasized that the draft bill published by the body tightens the requirements for the collection and exchange of data when conducting transactions with non-custodial wallets.

“Unlike of the original proposal, which only required the collection (but not verification) of personal data when transferring from / to a non-hosted wallet, the project requires “to verify the accuracy of information regarding the initiator and beneficiary behind the non-hosted wallet,” he wrote.

171485

The specialist explained that it is not physically possible for providers of services related to digital assets to verify a non-custodial counterparty. In his opinion, the bill in its current form will force cryptocurrency companies to refuse transactions with such services in order to comply with regulatory requirements.

The draft bill also provides for the possibility of introducing “additional special measures to reduce with transfers from/to non-hosted wallets, including the introduction of potential restrictions” one year after the entry into force of the legislation.

“This means that the European Commission may completely prohibit transactions in favor of non-hosted wallets, which was already proposed by some MPs in a previous draft,” explained Hansen.

171485

Among other things , the document involves the exchange of information about all cryptocurrency transactions, regardless of their volume. At the same time, a minimum threshold of €1000.

has been set for fiat currency “In order to facilitate the identification of related transfers and prevent the misuse of digital assets to facilitate, finance and conceal criminal activities and money laundering, a de minimis threshold should not be set for transactions with cryptocurrencies,” the project says.

171485

If approved by ECON, the bill will be submitted to the European Commission and the Council of the EU. Significant changes may be made to the document before final adoption.

Subscribe to BitNovosti on Telegram.

Share your opinion about this news in the comments below.

Source

Similar Posts