European lawmakers have voted to introduce new legislation designed to stop illicit flows amid industry pushback claiming the measures will stifle innovation and infringe on privacy.
See related article: EU votes against de facto Bitcoin mining ban
The proposal requires crypto service providers to collect information on senders and beneficiaries in all crypto transactions and must be made available to authorities upon request.
The mandate removes the minimum threshold for crypto transactions and applies to transfers involving private crypto wallets (unhosted wallets).
The EU plans to extend rules from traditional payments which obligates the validation of collected information for transactions over EUR 1,000 (US$1,107).
The proposal faced industry pushback, including from Coinbase CEO Brian Armstrong, who said the move “eviscerates all of the EU’s work to be a global leader in privacy law and policy.”
Global crypto markets fell roughly 2% by Friday morning Asia time, with Bitcoin falling 3.2%, according to CoinGecko data.
See related article: Will 2022 be the year of crypto regulation?