By Hassan Mehmood (Saudi Arabia)
The increasing number of crypto scams and fraud schemes has become a massive issue. According to many market experts, the major cause of rampant crypto-related crimes is the lack of regulations in the industry. Even countries like the United States are considered to be red zones when it comes to proper federal guidelines for crypto trading and exchanges.
The European Commission has finally taken solid steps to move towards a secure and safer crypto industry. The executive branch of EU countries seems to be planning a ban on all anonymous cryptocurrency wallets. The ban will stop any person from operating with unverified or pseudonymous digital wallets in the region.
Crypto Exchange Platforms and Enterprises will have to Become Compliant with KYC and AMP Policies
Reuters recently reported that European Commission is planning to introduce an anonymous crypto wallet exodus in the region. If the new regulations are implemented, the crypto businesses that require consumers to register for an account will have to become compliant with explicit KYC and AML protocols.
Also read:The proposal draft is in the initial stages since last month. EU Commission postulates that the presence of anonymous cryptocurrency digital wallets increases the danger of crypto-related crimes. On the other hand, it also makes it easier for white-collar criminals to get away with money laundering practices. EU also connects anonymous wallets with terrorism financing.
EU Commission Wants to Make Bitcoin Transactions Fully Traceable
The EU Commission spokesperson recently told the media that all crypto enterprises would be required to become compliant as a mandatory measure with the new regulatory guidelines. On the other hand, the law enforcement and intelligence agencies will be able to trace the Bitcoin transfers fully. Goldman Sachs recently published a report claiming that its new CBDC would make user ID compulsory. According to the banking organization, it would make the market safer and mitigate financial crimes risks. The Central Bank of Europe has recently started a digital euro project that plans to launch a virtual equivalent of Euro in the next 24 months.
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