What future for Bitcoin when EU wants to know all transactions?

According to the new proposal of European Union (EU), cryptocurrency exchanges must back up and report users’ transaction information. Last year, the EU’s European Executive Committee recommended that companies and crypto exchanges must back up and report users’ cryptocurrency trading information.

This regulation applies to customers who transfer money of 1,000 Euro (USD 1,116) or more. However, under the new decision, the minimum rule has been dropped, meaning all transactions in the scope will be recorded.

Accordingly, the $2.1 trillion crypto market is forced to comply with regulations. Because lawmakers are concerned, Bitcoin and other cryptocurrencies can upset financial markets and increase crime in the field.

The EU wants to tightly regulate bitcoin and many other cryptocurrencies through reporting user transaction information (Image: CNBC).

Rebuting the above statement, Coinbase’s chief legal officer Paul Grewal emphasized that “cryptocurrency is not like traditional cash” and that the above regulations will prevent the development of the digital currency market.

And Ernest Urtasun, a legislator from the Spanish Green Party, said that the regulation will help warn of suspicious transactions, potentially risky transactions to support freezing digital assets when needed.

At the same time, he also supported the decision to remove the minimum level of transaction control. Because the exemption for low value remittance transactions is not appropriate when users can circumvent the law by splitting the amount in transactions.

“Small transactions can also be linked to some types of crime, so removing the minimum level in the EU draft is in line with global regulations on money laundering,” Ernest Urtasun stressed.

Recently, EU legislative committees have agreed on new terms for the management of individual cryptocurrency wallets. At the same time, the agency also approved the compilation of a list of digital asset service providers that are high risk and do not comply with the rules set out by the EU.

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