Coinbase CEO Brian Armstrong is among the crypto advocates who have strongly expressed their opposition to the EU proposal to tighten crypto transfers.
A group of European lawmakers presented a bill for a vote, which would determine the fate of future crypto transfers in the EU. The proposal wants to extend Anti-Money Laundering (AML) requirements to exchanges with transactions of over EUR 1,000.
EU Passes Vote for Tightening Crypto Transfers Despite Community’s Disapproval
Citing the increased use of cryptocurrency in money laundering activities, EU lawmakers are looking to tighten the regulations on crypto assets. Crypto firms in the EU, including exchanges, will be required to obtain, hold, and submit information on any of their users making transfers. The proposal was voted on Thursday and ended up passing by 90 votes.
CEO Armstrong took to Twitter to express his disapproval with a list. According to Armstrong, the EU proposal is anti-innovation, anti-privacy, and anti-law enforcement. The Coinbase boss then proceeded to attach a page to the exchange where the public could express their opinions on the matter.
Coinbase CEO Brian Armstrong explained to users that the EU proposal wanted the exchange to report them to the authorities each time they made a transfer. It will be as though the EU required one’s bank to report them to the authorities every time they paid rent merely because the transaction was over 1,000 euros. Armstrong also equated the proposal to the EU requiring banks to collect and verify private information about your cousin when you sent them money to help with groceries.
The EU will Lag in Tech Innovation Following this Proposal
The reporting obligations are regardless of whether there is an indication of a suspicious activity or if it is with a self-hosted or unhosted cryptocurrency wallet. A user’s only crime warranting authorities’ attention would be receiving 1,000 Euros or more in crypto.
EPP economic spokesperson Markus Ferber echoed CEO Armstrong’s sentiments on the proposal being anti-innovation. According to Ferber, the EU is setting itself to fall behind other more open-minded jurisdictions as far as technological innovation is concerned.
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