The crypto industry has reacted strongly against a European Union Parliament committee voting in favor of a regulatory package for tighter Know Your Customer (KYC) and Anti-Money Laundering (AML) rules for ”unhosted” private wallets.

The new guidelines would require crypto service providers — most common exchanges — to verify the identity of every individual behind an unhosted wallet that interacts with them, while any transaction greater than 1,000 euros, or $1,100, would need to be reported to authorities.

Coinbase CEO Brian Armstrong vented his frustrations against the move via Twitter, drawing comparisons with fiat to highlight the absurdity of reporting and verifying a 1,000 euro transaction:

“Imagine if the EU required your bank to report you to the authorities every time you paid your rent merely because the transaction was over 1,000 euros. Or if you sent money to your cousin to help with groceries, the EU required your bank to collect and verify private information about your cousin before allowing you to send the funds.”

“How could the bank even comply? The banks would push back. That’s what we are doing now,” he added.

The proposal was part of an amendment to the Transfer of Funds Regulation that was voted through by…


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