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European Union Ink deals with cryptographic transfer tracing rules

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The Associated Press

Associated Press

London (AP) —The European Union has agreed on a new rule that will make cryptocurrency transfers follow the same money laundering rules as traditional bank transfers.

EU negotiators signed a tentative agreement late Wednesday on the first rule of the 27-country block on tracking the transfer of crypto assets such as Bitcoin.

If the ownership of a crypto asset changes, both the source and beneficiary information must be stored on both sides of the transfer according to the new rules. Cryptocurrency companies need to pass this information to authorities investigating criminal activity such as money laundering and terrorist financing.

"For a long time, crypto assets have been under the watchful eye of our law enforcement authorities," said Assita Kanko, one of the leading EU parliamentarians negotiating the rule. Said in a statement. "Abuse of crypto assets will be much more difficult and innocent traders and investors will be better protected."

EU agencies provide technical details before the rule is final approved. I am considering it. Negotiators were also set up at the end of Thursday to launch final details in the crypto assets market, or another transaction in a radical package of crypto regulations known as MiCA.

These will overwhelm the bohemian crypto industry in an era of plunging prices, clearing fate, fueling skepticism and demanding close scrutiny. It is part of the EU's driving force to lead.

Cryptographic regulations are expected to be very influential around the world, like the data privacy policy that sets the EU's trend, which has become the de facto global standard.