European Union Parliament Pushes to Regulate Crypto Transfers

The European Union is set to vote on adding regulations on digital assets to an anti-money laundering scheme, a move that would make transferring cryptocurrency funds tougher.

The proposal, first put forward last year by the EU’s executive European Commission, would require exchanges to collect and share information of traders making cryptocurrency transfers.

The amendments will make it easier for regulators to identify and report suspicious transactions, freeze digital assets, and discourage high-risk transactions, said Ernest Urtasun, a Spanish Green Party lawmaker.

Crypto exchange Coinbase has warned that the measure might enable surveillance and stifle innovation.

The Commission had initially proposed that the rules be applied to transfers worth more than €1,000 but a cross-party agreement made all transfers in scope. Urtasun said that an exemption on low-value transfers will simply encourage crypto users to dodge the rules by making unlimited low-value transactions.

Lawmakers have also agreed on adding rules regulating crypto wallets held by individuals.

The measure is set for a vote on Thursday and EU states will have a joint say with parliament on the law.

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