According to rumors, the European Union intends to limit or outright prohibit the use of privacy currencies within its borders. The prospective ban appears to be motivated mostly by concerns over money laundering.
The need for privacy-preserving cryptocurrencies is growing stronger as on-chain surveillance technology advances and lawmakers on both sides of the Atlantic become more watchful. According to reports, the European Union is considering outlawing privacy coins like Monero (XMR), Zcash (ZEC), Secret (SCRT), and Dash (DASH).
As per an anonymous EU official who purportedly revealed the plans, EU parliamentarians are working on an anti-money laundering policy proposal that would restrict banks and crypto providers from communicating with privacy currencies.
If implemented, the policy essentially blacklists several popular cryptocurrencies, including Monero (XMR), Zcash (ZEC), Secret (SCRT), and Dash (DASH). The European Parliament proposed legislation in March to restrict transactions between exchanges and unhosted wallets. The parliament appears to be preparing to tighten limitations on crypto anonymity.
The body stated in a draft legislative proposal dated November 9, which was first reported by CoinDesk: “Credit institutions, financial institutions, and crypto-asset service providers shall be barred from keeping…anonymity-enhancing coins.”
The document is thought to have been written by Czech authorities and has since been distributed to the EU’s 26 member states. The idea to violate people’s privacy has not yet been made official.
Leave a Reply