The European Union’s parliament, commission, and council are all set to begin the talks on the controversial anti-money laundering rules for cryptocurrency transactions on Thursday, according to CoinDesk.
This will be the last stage towards the passage into law of measures that many industry experts have dubbed to be a privacy killer and stifle innovation.
Thibault Schrepel, a blockchain law expert, told CoinDesk, “it could constitute an unfair intrusion into personal affairs that could invite a legal challenge.”
Why It Matters: Once enforced, the legislation would require cryptocurrency providers to verify customer details and report any suspicious transactions to the authorities. The rules would also cover transactions from unhosted or self-hosted cryptocurrency wallets – addresses that are in the custody of private users.
The law is being designed to bring cryptocurrencies such as Bitcoin BTC/USD, Ethereum ETH/USD, and Dogecoin DOGE/USD in line with AML requirements for normal payments of over EUR 1000.
This came after the European Parliament lawmakers backed applying tough money-laundering rules to the industry, arguing the rules were needed to curb crime as part of an EU anti-money laundering package.
Coinbase Global Inc COIN CEO Brian Armstrong had then called the proposals “anti-innovation, anti-privacy, and anti-law enforcement” in a Twitter thread.