New European rules coming up for cryptocurrencies

New European rules coming up for cryptocurrencies. Here is how the European Union is trying to regulate an expanding sector.

New European rules coming up for cryptocurrencies - crypto ue

Le cryptocurrency continue to remain in the spotlight of the main international authorities, with individual countries that, all over the world, are considering imposing bans or trading restrictions. And in the European Union?

La situation in the old continent, which obviously needs concrete harmonization, could soon become a little more difficult for EU traders and investors: the European Council has in fact just introduced a directive that could affect the crypto sector in Europe, in order to remove the anonymity in the sector. An advantage which, however, cryptographic investors seem to hold quite clearly.

The document, approved by European Council a few days ago, tries to update the legislation on anti-money laundering and to address the risks related to virtual currencies. These new rules, reads the paper, are intended to drastically reduce anonymity both as regards the identification of users and as regards transactions. At this point, it is clear to expect some consequent effect: anonymity is in fact one of the key benefits for some digital currencies such as Monero and Cardano, and therefore it is no wonder that these new rules will have a negative effect on these currencies .

Entitled "Strengthening EU rules to prevent the riciclaggio di denaro and financing of terrorism”, The document has the ambitious purpose of closing the taps of criminal finances, without however hindering the normal functioning of payment systems. At the center of this target, even the are quickly finished cryptocurrency, posed as the subject of - as stated in the document - "risks related to virtual currencies", or those dangers that revolve around the anonymity of cryptocurrency traders and encrypted transactions, and which soon could have their anonymity seriously reduced.

The law obliges the suppliers of exchange and wallet services to report any suspicious transactions, and authorizes authorities to monitor the use of cryptocurrency through these platforms, allowing national financial intelligence units to access information, and thus being able to link cryptocurrency addresses to their owners.

In a statement, Bulgarian Finance Minister and current President of the Council of the European Union Vladislav Goranov said that "these new rules respond to the need to increase security in Europe by further eliminating the means available to terrorists. They will allow us to break criminal networks without compromising fundamental economic rights and freedoms. " It will be like this?