Digital currency crackdown is coming again! EU considers banning anonymous cryptocurrency wallets

Source: Wall Street Journal

The European Commission announced a package of proposals on July 20 to strengthen the fight against money laundering and terrorist financing across the EU and establish an agency for this purpose. The crackdown includes a ban on providing anonymous cryptocurrency wallets to users and a proposal to set a 10,000 euro cap on large cash transactions across the EU.

Specifically, the European Commission stated in a press release published on its official website that in order to make it more difficult for criminals to launder money, the proposal will establish a cap of 10,000 euros on large cash transactions across the EU . If member states have previously set their national limits below this number, they can remain unchanged.

In addition, the proposal also prohibits providing anonymous cryptocurrency wallets to users. Companies that handle crypto assets for customers must collect information such as the customer's name, address, date of birth and account number, as well as the name of the person who receives the crypto assets, and the recipient's service provider must also check whether the required information is missing. The European Commission stated in a press release that this will ensure the traceability of the transfer of crypto assets, including Bitcoin, and the above measures will apply to all cryptocurrencies and all crypto asset services.

According to the plan, the above package of proposals still needs to await approval from the European Parliament and the European Council. The ultimate goal is to make the newly established EU institution operational before 2024.

Before the EU's package of proposals was released, cryptocurrencies had already experienced a global regulatory wave. Previously, Binance, the world's largest cryptocurrency exchange, had been subject to continuous scrutiny and regulatory actions by regulatory agencies in countries and regions including Thailand, the Cayman Islands, Singapore, Japan, the United Kingdom, and Ontario, Canada, due to unlicensed operations, including but not limited to warnings, lawsuits, and business bans. At the time, an article in Wall Street Journal analyzed that the regulatory actions of various countries were not just aimed at Binance's individual actions. The regulatory standards of the entire cryptocurrency industry are tightening, which will directly determine the success or failure of the entire market.

Bitcoin continued its weak performance since it fell below the $30,000 mark at noon on Tuesday Beijing time, and fluctuated around the 29,600-29,800 range for most of the time. Although it once returned to above 30,000, the upward trend did not last long and then fell back below the mark. According to CoinDesk's market data, as of press time, Bitcoin was trading at $29,673.40, a 24-hour drop of 3.66%.