Bitcoin price falls as the EU promises to make the cryptocurrency traceable

Bitcoin price falls as the EU promises to make the cryptocurrency traceable

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Bitcoin, Ether, and almost all other cryptocurrencies have worked hard for the last month later China has pledged to ban cryptocurrency mining, among other services, in end of June. Now cryptocurrency enthusiasts have more worry, while the EU seeks a crackdown on the cryptocurrency industry doing digital wallets more traceable.

As a part of a bigger effort to hinder money laundering and more financial crimes, the EU on He introduced legislation on Tuesday package which would require cryptocurrency exchanges and other service providers to collect information by users of their platform. Cryptocurrency wallets are currently completely anonymous, tied only to complicated passwords and not personal information.

The laws will aim at the “crypto-asset service providers “rather than the users themselves. It will be looming on transfer platforms a acquire staff information by the sender and recipient, for example.

“Cryptocurrency is one of the new ways to recycle money, “Mairead McGuinness, the Commissioner for Financial Services, Financial Stability and Capital Markets Union, tweeted on Tuesday. “Our rules now it will apply to the whole of the cryptocurrency sector. We will banish anonymous crypto wallets and go sure that crypto-asset transfers are traceable “.

Over $ 2 billion-worth of the cryptocurrency has been criminally laundered in 2020, second research Chainalysis company, with 55% of that money be channeled through 270 blockchain accounts. The EU new read, if taken up globally, it would make it tale much more difficult activity. US Treasury Financial Crimes Enforcement Network last year called for similar traceability to be imposed in the United States, citing illicit activities based on cryptocurrencies by the likes of Lazarus Group.

“Since virtual assets transfers are subject to similar money-laundering and terrorist financing risks such as wire transfer funds transfers”, Wrote the EU Commission,“ it therefore seems logical that use the same legislative tool to address them common problems.”

Proponents of cryptocurrency often claim anonymity as one of the system’S great assets, reasoning that privacy is a key part of the decentralized finance that cryptocurrency can offer. However, Bitcoin could be more traceable than previously thought. The FBI in June he said it was in able to track and recover 75 Bitcoins, then worth $ 2.3 million, that Colonial Pipeline paid the hackers in the May ransomware attack that corrupted the company computer systems and pushed up the price of gas.

Bitcoin hit a high of over $ 62,000 in April but it started to drop precipitously in the goal of May. The price fell below $ 30,000 last month in which China has again pledged to ban the collection of cryptocurrencies, which implies power computer that solve complex algorithms to “mine” coins like Bitcoin and Ether. The price of Bitcoin has fluctuated between $ 32,000 and $ 35,000 in July, but after dropping slightly last fall week below $ 30,000 again like the EU announced its planned legislation.

The whole market has been in landfills, no just Bitcoin. Dogecoin, the memecoin that could, is located at 17c, far away below it’s high May of 72 cents. After exceeding $ 4,000 in May, the ether is currently seated at $ 1776.

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