EU Taking Steps to Ban Privacy Coins

The European Union may intensify its privacy-related regulation efforts.

EU lawmakers are working on an anti-money laundering policy proposal that would restrict banks and crypto providers from engaging with privacy coins, according to a CoinDesk story citing an unidentified EU ambassador.

If implemented, the regulation will essentially ban a number of prominent cryptocurrencies, such as Monero (XMR), Zcash (ZEC), and Dash (DASH).

The European Parliament introduced legislation in March to restrict cryptocurrency transactions between exchanges and unhosted wallets. The legislature now seems willing to increase limitations on crypto anonymity.

Credit institutions, financial institutions, and crypto-asset service providers are forbidden from holding anonymity-enhancing currencies, according to a draught of the legislation proposal dated November 9 and previously published by CoinDesk.

It is thought that Czech authorities authored the proposal, which has subsequently been sent to its 26 member nations. The idea to violate privacy has not yet been made public.

This month, Crypto Briefing interviewed Zcash CEO Josh Swihart to receive an insider’s insight into the problems and potential within the privacy currency industry. Swihart informed us that public blockchains pose a significant security threat to individual users and businesses.

Swihart said, “If I’m a firm that accepts cryptocurrencies directly, not via a third-party middleman, I can’t afford to let my rivals access all of that [personal] information.” “Not just the information about my company — what’s coming in and what’s going out — but also information about my clients who may be trading with me online or using crypto. I thus anticipate a tipping point when demand will explode.”

Swihart anticipates that the desire for privacy coins will intensify since “today you have all sorts of crypto surveillance businesses, Chainalysis and others, that not only follow transactions to examine flows but also tag addresses.”

Also Read: SEC Vs. Ripple Case Takes On New Twists As Whale Holdings Of XRP Soar