REuters: EU Tighten Rules for Crypto Asset Transfers

[hv_]

https://www.reuters.com/technology/eu-tighten-rules-cryptoasset-transfers-2021-07-20/

[odolvlobo]

Minor note:

The law proposed by the European Commission, ..., would apply what is known as the travel rule to crypto transactions to make them traceable.

[teosanru]

https://www.reuters.com/technology/eu-tighten-rules-cryptoasset-transfers-2021-07-20/

So this basically means now the adoption of bitcoin will actually become the reason for its easy user traceability. If any big website like Amazon starts to accept bitcoin as a mode of payment and people decide to use bitcoin for their payments we basically are providing an identity for the government to tether with that bitcoin address for lifetime. Any incoming or outgoing transaction on that address would be considered as your Income and Expenditure. In a way it's good as dirty money could be curbed and it would be easier to accept such a thing but really hampers the reason why most people use Bitcoin in the first place. Also if EU does this, which is considered as the union which focuses a lot of cyber privacy, passing such amendments in American and Asian countries would be much easier.

[Husires]

https://www.reuters.com/technology/eu-tighten-rules-cryptoasset-transfers-2021-07-20/

So this basically means now the adoption of bitcoin will actually become the reason for its easy user traceability. If any big website like Amazon starts to accept bitcoin as a mode of payment and people decide to use bitcoin for their payments we basically are providing an identity for the government to tether with that bitcoin address for lifetime. Any incoming or outgoing transaction on that address would be considered as your Income and Expenditure. In a way it's good as dirty money could be curbed and it would be easier to accept such a thing but really hampers the reason why most people use Bitcoin in the first place.

Bitcoin anonymization methods will evolve and it will become difficult to trace all transactions with it. It is impossible to reach an absolute level of privacy because Bitcoin was not designed for that and therefore everyone who wants privacy will move to other currencies such as Monero or any better model.

It wouldn't be difficult for governments to track Bitcoin if they wanted to.

[teosanru]

https://www.reuters.com/technology/eu-tighten-rules-cryptoasset-transfers-2021-07-20/

So this basically means now the adoption of bitcoin will actually become the reason for its easy user traceability. If any big website like Amazon starts to accept bitcoin as a mode of payment and people decide to use bitcoin for their payments we basically are providing an identity for the government to tether with that bitcoin address for lifetime. Any incoming or outgoing transaction on that address would be considered as your Income and Expenditure. In a way it's good as dirty money could be curbed and it would be easier to accept such a thing but really hampers the reason why most people use Bitcoin in the first place.

Bitcoin anonymization methods will evolve and it will become difficult to trace all transactions with it. It is impossible to reach an absolute level of privacy because Bitcoin was not designed for that and therefore everyone who wants privacy will move to other currencies such as Monero or any better model.

It wouldn't be difficult for governments to track Bitcoin if they wanted to.

But I think these privacy based Cryptos would face a big crackdown from governments. Bitcoin enhances traceability of transactions it's not easier for government to challenge that it's used for money laundering so we are banning it but these other currencies like Monero can face such crackdown easily. Anonymization methods like mixers blenders are already evolving but last I have heard that government are getting strict about these mixers and blenders too.

[HeRetiK]

Here's the full proposal btw:
https://ec.europa.eu/finance/docs/law/210720-proposal-funds-transfers_en.pdf

I've only skimmed it, but at a first glance it only seems to affect the likes of exchanges and custodial wallets:

This Regulation shall apply to transfers of funds, in any currency, => or cryptoassets, <= which are sent or received by a payment service provider => , a crypto-asset service
provider, <= or an intermediary payment service provider established in the Union.

Where crypto-asset service provider is defined as:

(8)‘crypto-asset service provider’ means any person whose occupation or business is the provision of one or more crypto-asset services to third parties on a professional basis;

(9)‘crypto-asset service’ means any of the services and activities listed below relating to any crypto-asset:

(a)the custody and administration of crypto-assets on behalf of third parties;

(b)the operation of a trading platform for crypto-assets;

(c)the exchange of crypto-assets for fiat currency that is legal tender;

(d)the exchange of crypto-assets for other crypto-assets;

(e)the execution of orders for crypto-assets on behalf of third parties;

(f)placing of crypto-assets;

(g)the reception and transmission of orders for crypto-assets on behalf of third parties

(h)providing advice on crypto-assets;

So while not especially pretty at least to me it doesn't seem much worse than existing KYC/AML regulations. Except it sounds like a lot more paper work for exchanges.

[hv_]

Not only EU

https://www.coindesk.com/congressman-introduces-new-legislation-to-regulate-digital-assets

China was and still is kicking all out by hard

[Kong Hey Pakboy]

The law proposed by the European Commission, ..., would apply what is known as the travel rule to crypto transactions to make them traceable.

Is this something that we should worry about since there's a very high possibility that it will pass through the commission because we all know how EU wants to have cryptocurrencies traceable to prevent money laundering or funding of terrorism, of the two I don't think that it's worrying that they use cryptocurrencies since as it is now, most cryptocurrencies can easily be traced.

[myters]

"A company handling cryptoassets" What does that mean? A crypto payment gateway? F*** payment gateways. Peer to peer, no third party. You can't implement KYC/AML to direct peer to peer transactions, right? I'm sorry EU, your rules can't change the game here.

[HeRetiK]

"A company handling cryptoassets" What does that mean? A crypto payment gateway? F*** payment gateways. Peer to peer, no third party. You can't implement KYC/AML to direct peer to peer transactions, right? I'm sorry EU, your rules can't change the game here.

Yes, the EU is only targeting crypto-asset service providers such as exchanges and custodial wallets. Peer to peer transactions are not covered by this proposal, nor does it aim to do so. Actually person-to-person transfers -- at least in the form of non-commercial activites -- are explicitely excluded:

This Regulation shall not apply to person-to-person transfer of crypto-assets.