Companies send letter of protest to the European Union for harsh regulation on bitcoin

Companies send letter of protest to the European Union for harsh regulation on bitcoin

Several representatives of the cryptocurrency industry are asking the legislators and finance ministers of the European Union (EU) to rethink the strict control over the use of bitcoin (BTC) and other cryptocurrencies that would be one step away from being approved in the eurozone. .

Some academics and senior executives from various cryptocurrency companies, such as Ledger, Aave and Blockchain.com, have signed a letter in which they consider the Regulation “onerous” and “alarming” Transfer of Funds (TFR) or package of laws recently approved by European legislators.

“European Parliament proposals leading to the disclosure of all transactions and wallet addresses will put all digital asset owners at risk. […] and they risk derailing years of preparatory work and the future of Web 3.0 in Europe.”

Charter industry representatives of the EU criptomonedas, according to Coidesk.

As reported by CriptoNoticias, at the end of March European legislators agreed to approve a package of laws that integrates the so-called “travel rule”. Is about regulations prohibiting anonymous transactions by requiring data to be recorded identity of users in each payment made with BTC or other cryptocurrencies.

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The regulations require that the identification of addresses be carried out regardless of the amount of the transaction and the type of platform used.

It means that Users who carry out transactions through decentralized platforms will also be identified. (DeFi) and those that use self-custody wallets to send or receive payments with bitcoin or any other cryptocurrency.

Privacy
Europe is about to strike a blow against the privacy of users of cryptocurrencies, such as bitcoin. Source: Pexels.

Some members of the cryptocurrency community, such as Patrick Hansen of blockchain firm Unstoppable DeFi, believe that the package of laws approved by European legislators is “a recipe for disaster”. This because They are repressing the privacy of users criptoactivos and the same time, limiting the use of autocustodia portfolios.

After being approved by legislators, the TFR is in the plenary session of the European Parliament awaiting its approval in tripartite dialogue. This stage usually lasts two months and offers the last opportunity to introduce changes.

The community that revolves around cryptocurrencies hopes that it will be the individual voices of the council and the tripartite commission of Parliament, who can make the questions that prevent the changes already approved by legislators from advancing.

“I am not anti crypto”: lawmaker who proposed the Funds Transfer Regulation

Assita Kanko, the Belgian legislator who proposed the controversial TFR, admitted, in a interview recently, that she is ‘surprised’ by some of the reactions to her regulations.

Among other pronouncements, lawyers for the Coinbase exchange say the Kanko proposal’s undue invasion of privacy could hamper Europe’s competitiveness because it seeks to discourage innovation based on blockchains.

Assist Kanko
Assita Kanko says his only proposal aims to prevent bitcoin payments and other criptomonedas be useful to criminals. Source: YouTube / ECR Group European Parliament.

Still, the Belgian legislator says that “admires” the innovative mentality of those active in the market for criptomonedas, and even cited his own family members who follow him. But she also says she is satisfied that, some make misuse of anonymous payments to finance crimes, citing drugs, prostitution, child pornography and terrorism.

Bitcoin is “really cool, but I don’t think crime is cool,” Kanko said. His point of view contrasts with those who claim that the anti-money laundering policies applied by regulated bitcoin companies are ineffective in arresting criminals. They are the same ones who add that these same methods are very efficient for users to become victims of cybercriminals who steal their data.