The European Union will soon vote on a bill requiring exchanges to report all crypto transactions. – Latest News

The European Parliament may soon decide whether or not to approve a proposal on cryptocurrencies. It aims to expand the “travel rule” for crypto companies, which would include almost all transactions.

A ruler AML to exert more control over the crypto industry.

There ” travel rule is an anti-money laundering rule (AML) which also applies to traditional banks. This basically requires financial institutions to provide certain sender and receiver information in the transaction. This includes date of birth, username or account number.

However, the European Parliament will vote on whether toexpand the scope of travel rules for cryptocurrency businesses. The vote is expected in the coming weeks.

Travel rules state that any financial transaction over €1,000 must be reported to the financial authorities. While this was hailed as a victory against money laundering (AML)the new proposal aims to remove reporting thresholds.

Read also: Tether holds part of its reserves in a small Bahamian bank, Capital Union.

The new rule requiring European exchanges to report every crypto transaction to authorities.

So, if approved, cryptocurrency exchanges must report every cryptocurrency transaction, regardless of the amount. Indeed, the rule is intended and necessary to enforce the controls AML. On the other hand, industry players are questioning the impact this could have on EU-regulated exchanges. They have to comply with stricter rules than those unregulated outside the strict rules.

Ajinkya TuulpuleHead of Compliance at bitFlyersaid in an interview that the measurement seems exaggerated, but that approval is always possible.

This measure could reduce some of the benefits of being a disruptive technology. It could still face all the regulation of traditional financial services. Tupule points out that report every transaction, even a penny, with all the information usually required is a challenge. However, it appears that a know-your-customer process (KYC) robust, and automated is the best. This is because cryptographic transactions can be performed continuously.

“For the majority of customers who are likely to be low risk, we can automate the onboarding. We may automate data collection. We can even automate data transmission and verification of incoming data. »

Crypto exchanges may need to suspend certain transactions until the know-your-customer process (KYC) be completely over, said Tuulpule. This can cause delays in the settlement of transactions, among other challenges.

Another regulation in the process of being approved

Another important rule that might be more appreciated by the industry is the crypto asset market (Mica)which could also be approved soon.

Also, Tulpule said that the Mica wants to avoid regulatory arbitrage between member states and create a unified supervisory layer at EU level. He pointed out that this is a good thing, and it will help create a set of rules across the EU. The law is still under negotiation and, although most of the text has been approved by the EU institutions, some changes can be expected before final approval.

Regarding any changes, tulip said : “What I would like to see is that once Mica got outit allows regulated European stock exchanges to at least find it difficult to be regulated unless their clientele is not. FX unregulated. »

Bonus: Kazakhstan received $1.5 million in revenue from Bitcoin miners in Q1 2022.

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The European Union will soon vote on a bill requiring exchanges to report all crypto transactions. – Latest News

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