The EU worries that money is “lost”. The reason is crypto assets that are under the radar and possibly used for money laundering – and tax evasion is also an issue. The EU wants to apply what is known from the classic (cash) money world to the digital world. The “unhosted wallets” are also a thorn in the side. Anyone can get the software and become part of a network – just like that, without having to show their identity.
That should change if the EU Commission has its way. All users of hosted wallets would have to identify themselves in the classic way, including users who send non-hosted funds to hosted wallets.
” Under the new requirements agreed by MEPs, all transfers of crypto assets must include information on the source of the asset and the recipient, which must be made available to the relevant authorities,” read the Parliament’s statement. Technological solutions are designed to ensure that these asset transfers can be individually identified. The rules would not apply to person-to-person transfers made without a provider, such as B. Bitcoin trading platforms, or between providers trading on their own behalf.
Due to their speed and virtual nature, transactions in crypto assets can easily circumvent existing regulations that rely on transaction thresholds. MEPs have therefore decided to abolish minimum thresholds and exemptions for low-value transfers. Previously, 1,000 euros were under discussion.
Sounds a bit like We simply convert the classic financial rules into digital.