Europe: Bill would require identification of all bitcoin transactions

The European Commission is proposing a modification in the regulations so that transactions with bitcoin and other cryptocurrencies are traceable and identifiable with user data. It also seeks that digital asset providers apply the travel rule to operations.

The so-called travel rule is that operations that exceed a set amount must record the data of who sends and receives the funds. The data contained must be: names and surnames, amount, date of the operation, physical address of both participants, date of birth and number of associated accounts.

According to CriptonoticiasExchanges in all their forms, centralized, decentralized custody services, P2P platforms, must comply with this regulation. In this way, the European Commission seeks to toughen its measures to fight money laundering and terrorist financing. Similarly, these reforms follow the guidelines provided by the International Financial Action Group, an organization that has been issuing suggestions for both countries and institutions to establish stricter regulations regarding bitcoin.

Likewise, the Commission seeks to prohibit anonymous cryptocurrency wallets, for this, it aims that, if a person is going to make a withdrawal from an exchange, the user must first provide the address to which the funds are destined. In that sense, funds can only be withdrawn to the addresses provided and not to any address. This type of action also seeks to ensure the traceability of transactions with cryptocurrencies.

Of the proposed reforms, the European Parliament and the member states of the European Union are expected to determine whether to approve them or not, which would lead to a series of deliberations and possible legal restructurings in the cryptocurrency sector in the coming years.

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Andrea Norabuena
Lawyer from the Pontifical Catholic University of Peru (PUCP). I am interested in topics related to consumer protection, intellectual property, competition law and personal data protection.


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