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The conduction of anonymous crypto transactions is set to be illegal in all parts of Europe, following a full clamp down on the industry by the European Union.
Politicians and lawmakers in Brussels are said to have voted massively in favor of a crackdown on non-hosted or unverified wallets.
Basically, this will imply that those who send and receive crypto payments will need to be fully identified and verified by crypto exchanges.
Although these anti-money laundering measures are only required and enforced for fiat payments over €1,000, there will be no minimum threshold for crypto payments.
Following the news on the crypto clamp-down, the EU regulations have faced several criticisms as experts warned that it might be impossible for crypto exchanges to verify the owners of unhosted wallets.
Due to these regulations, trading platforms may be forced to restrict their users from transacting with unhosted wallets altogether in a bid to show full compliance.
However, many have deduced this could amount to an invasion of privacy — citing that the blockchains are fully traceable, which might imply that this approach is heavy-handed.
Crypto exchanges across various parts of Europe and the U.S have been persuading European investors to make contact with politicians and lawmakers to express their concerns before the vote takes place.
Earlier in the week, the Chief Policy Officer of Coinbase – Faryar Shirzad, gave warnings that these measures “could significantly violate individual financial freedom, irreparably harm the crypto economy, and stifle the future of innovation across the EU.”