EU Parliament votes to outlaw anonymous crypto transactions and igniting a privacy debate

Two prominent German politicians, Breyer and Gunnar Beck of the Alternative für Deutschland (Alternative for Germany) party, voted against a ban on anonymous cryptocurrency transactions.

Legislation aimed at preventing anonymous cryptocurrency transactions through hosted wallets has recently been approved by top committees of the European Parliament. This move is in line with attempts to apply the EU’s Anti-Money Laundering (AML) and Counter-Terrorist Financing instructions to the digital currency industry.

The move comes after a tentative deal to bring the cryptocurrency market within the purview of the EU’s strict anti-money-laundering regulations, reached between the European Council and the Parliament.

In a March 19th X post, Patrick Breyer—a lawmaker for Germany’s Piratenpartei Deutschland—announced that the bulk of the Parliament’s main committees had approved this legislation change.

Two prominent German politicians, Breyer and Gunnar Beck of the Alternative für Deutschland (Alternative for Germany) party, voted against a ban on anonymous cryptocurrency transactions.

Custodial cryptocurrency wallets offered by other parties, such as centralized exchange platforms, are the target of the law.

Anonymous crypto and cash transactions will also be subject to new limitations as a result of the updated AML requirements.

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Any business transaction involving more than 3,000 euros in cash will be considered illegal, and any business transaction involving more than 10,000 euros in cash will also be considered illegal.

The Irish legal firm Dillon Eustace has speculated that the law may be put into force sooner than the three-year period anticipated after its effective date.

Under this new structure, cryptocurrency networks—which are characterized by anonymous and permissionless access—will see major changes.

After the committee passed the bill, Breyer released a statement expressing his worries about the dangers the law presents to people’s ability to make their own financial decisions and their privacy while dealing with their own funds.

The freedom to conduct business anonymously was one of his fundamental principles, he said. In response to these governmental actions, the cryptocurrency industry is split.

Some see the new anti-money-laundering regulations as a positive development, while others are concerned about possible restrictions on economic freedom and invasions of privacy.

The presenter of the Sound Money Bitcoin Podcast, Daniel “Loddi” Tröster, brought attention to the wider ramifications and practical challenges of the law.

Concerned about the potential limiting implications on the digital currency scene, he brought attention to its influence on contributions and bitcoin use in the EU generally.

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