Yesterday, he EU Commission announced which presented proposals for stricter regulations on cryptocurrencies to combat money laundering and terrorist financing. The plans affect how they affect both transactions and the anonymous storage of cryptocurrencies. On the day of the announcement, popular cryptocurrencies, such as Bitcoin and Ethereum, had a brief price success.
The proposal for new legislation involves a commitment to give EU-wide governments a greater cryptocurrency ordinance, which means transactions involving currencies like Bitcoin, Ethereum and Ripple will soon be fully traceable.
The ad (via. Golem.de) states: "These proposals are part of the Commission's efforts to protect EU citizens and the financial system from money laundering and terrorist financing. They aim to facilitate the detection of suspicious transactions and activities and close loopholes used by criminals to launder the proceeds of crime through the financial system or to finance terrorist activities. "
The plans also point to a cash limit of € 10,000 ($ 11,777) and a ban on anonymous digital wallets.
"Limiting high cash payments makes it difficult for criminals to launder gross money. In addition, the provision of anonymous cryptographic 'wallets' is prohibited, as is the case with anonymous bank accounts."
Nothing is known about what this means for someone who currently has an anonymous cryptocurrency portfolio, but once all is agreed upon, future portfolio configurations will involve handing over their personal data to the government.
Coindesk price charts show that, as a result of the announcement, between midnight and 5 a.m. on July 20, Bitcoin prices fell around $ 1,000 (£ 733), with Ethereum falling $ 94 (69 pounds). Throughout the day, prices hovered around $ 29,600 and $ 1,700 respectively, although both appear to have recovered.
Of course, we can’t be sure if the price directly affected the proposals (the correlation doesn’t imply causation and all that), but the effect on the cryptocurrency market is sure to be felt when the changes finally occur.
Lord only knows how much cryptocurrency is in the hands of unsuspecting sos.