For some months now, the European Union (EU) has been examining the cryptocurrency sector, with in particular the possible implementation of the MiCA regulation. And now it is anonymous cryptocurrencies that are being targeted: Monero (XMR), Zcash (ZEC) and their consorts may simply be banned in Europe.
Anonymous cryptocurrencies that are no longer welcome in Europe?
Information has been leaked at the European Union level and a plan to change the anti-money laundering rules has been seen by our colleagues at CoinDesk. New rules would be introduced for anonymous cryptocurrencies (privacy coins), such as Monero, Zcash or Dash.
Corporations and banking institutions may no longer be allowed to handle and distribute this type of cryptocurrency, according to the document:
“Lenders, financial institutions and cryptocurrency service providers should be prevented from maintaining them […] pieces that promote anonymityt.»
This document was sent to the 26 member states of the European Union, in view of a possible adoption.
👉 Find our guide – How to buy Monero (XMR) in 2022?
Avoid anonymous transactions
The apparent hostility of regulators towards anonymous means of payment is no surprise, but this is the first time that anonymous cryptocurrencies it could be banned on such a large scale. These are in fact included in the new draft of rules aimed at combating money laundering.
These could lead to a ban on large cash transactions, as well as creation of a new European agency dedicated specifically to this sector, AMLA. For cryptographic service providers, it would also mean that the $1,000 transaction threshold would be waived. All transactions, regardless of amount, may be reported.
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The last measure of a long series?
The hunt for anonymity is not specific to cryptocurrencies: In recent years, institutions and regulators of all persuasions have tended to favor traceable methods of transfer. This is obviously in contradiction with part of the philosophy surrounding cryptocurrencies – some judge that it is precisely these rapid and potentially unmonitored transfers that are in the interest of the blockchain.
The FTX case shouldn’t in any case encourage regulators in Europe and elsewhere to stop their hunt for anonymity. And if the cryptocurrencies in question will obviously be available and usable outside the centralized services, this could make their distribution less easy.
👉 To go further – What are anonymous cryptocurrencies?
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