The European Union (EU) has been heavily criticized by the crypto and Bitcoin communities due to its position on cryptocurrency regulations. The European Union Parliament Committee voted in favour of regulations that would strengthen Know Your Customer (KYC) checks and Anti Money Laundering (AML) regulations.
European Union Criticized for its Position on Bitcoin and Digital Currencies
The cryptocurrency community has gathered strength in order to criticize the European Union for its position when it comes to crypto regulations. According to the new guidelines, crypto services providers will have to request additional information about unhosted wallets that interact with users on these platforms.
Additionally, it would be necessary for these services providers to get information about transactions above €1,000. That means that users would not be able to freely send and receive funds without having to report them to authorities if transactions surpass the above-mentioned threshold or if the funds come from an unhosted wallet (without KYC).
One of the main figures attacking these regulations include Brian Armstrong, the funder of Coinbase, one of the largest cryptocurrency exchanges around the world. He wrote that the European Union is not working to protect privacy but it is instead punishing crypto holders and eroding individual rights as few other countries have done.
Indeed, the European Union will have one of the most anti-privacy regulations in the world when it comes to cryptocurrencies. Rather than making it possible for individuals and users to easily send and receive their hard-earned money, they are trying to control and monitor each and every transaction that comes from an unhosted wallet or that is worth over €1,000.
Brian Armstrong said on that matter:
“If you sent money to your cousin to help with groceries, the EU required your bank to collect and verify private information before allowing you to send the funds. How could the bank even comply? […] This eviscerates all of the EU’s work to be a global leader in privacy law and policy. It also disproportionately punishes crypto holders and erodes their individual rights in deeply concerning ways.”
It is worth pointing out that countries that EU leaders consider to be dictatorial are currently providing greater privacy rights to citizens. After the unprecedented monetary expansion performed by large central banks (including the European Central Bank), it is necessary for financial regulators to gather funds in any possible way. Inflation rates continue to soar and privacy rights are constantly attacked by politicians and regulatory agencies around the world.