Proposed European Union (EU) law would require enterprises that send bitcoin or other Cryptocurrency assets to collect information on the receiver and sender.
The recommendations, according to the European Union Commission, would make crypto-assets more traceable and so aid in the prevention of money laundering and terrorism financing.
The proposed regulations would also make it illegal to provide anonymous cryptocurrency wallets.
It could take two years for the ideas to become law.
Crypto-asset transfers, according to the EU Commission, should be subject to the same anti-money laundering procedures as wire transfers.
The ideas will need the approval of member states and the European Parliament to become law.
“Given that virtual assets transfers face similar money-laundering and terrorist-funding threats as wire funds transfers,” the EU Commission said, “it appears logical to employ the same legislative tool to address these common issues.”
While anti-money laundering rules already apply to some crypto-asset service providers, the latest recommendations would “extend these rules to the entire crypto-sector, compelling all service providers to do due diligence on their customers,” according to the EU Commission.
According to the proposed regulations, a business transferring crypto for a customer must disclose the customer’s name, address, date of birth, account number, and recipient’s name.
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