The EU Commission announced yesterday that it would present proposals for stricter regulations for cryptocurrencies to combat money laundering and terrorist financing. The plans are intended to affect how both transactions and anonymous storage of cryptocurrencies are handled. On the day of the announcement, popular cryptocurrencies like Bitcoin and Ethereum suffered a brief drop in prices.
The proposal for the new legislation includes an offer to give governments across the EU more order around cryptocurrencies, which means transactions in currencies like Bitcoin, Ethereum and Ripple will soon be fully traceable.
The communication (via. Golem.de) states: “These proposals are part of the Commission’s efforts to protect EU citizens and the financial system from money laundering and terrorist financing loopholes that criminals use to exploit the proceeds of crime through the financial system wash or finance terrorist activities. “
The plans also point to cash restrictions of EUR 10,000 ($ 11,777) and a ban on anonymous cryptocurrency wallets.
“Limiting high cash payments makes it difficult for criminals to launder dirty money. In addition, the provision of anonymous crypto wallets is prohibited, as is already the case today with anonymous bank accounts. ”
There’s no word on what this means for anyone who currently owns an anonymous cryptocurrency wallet, but once everything is agreed, future wallet facilities will include giving your personal information to the government.
The Coindesk price charts show that between midnight and 5 a.m. on July 20, between midnight and 5 a.m. on July 20, Bitcoin prices fell around $ 1,000 (£ 733) while Ethereum fell by $ 94 (£ 69). Over the course of the day, prices hovered around $ 29,600 and $ 1,700, respectively, although both seem to have now rebounded.
Of course, we can’t be sure that pricing has been directly affected by the proposals – correlation doesn’t imply causation and all that – but the impact on the cryptocurrency market is sure to be felt when the changes finally go into effect.
Only Lord knows how much cryptocurrency is held by shady so-and-so’s.