Published: 28.03.2022
Article reading time:
2 minutes.
The leadership of the American platform Coinbase believes that amendments to the Crypto Travel Rule could stifle innovation in the industry.
Exchange Policy Director Faryar Shirzad urged the crypto community to oppose the EU amendments to the Crypto Travel Rule – recommendations for international cryptocurrency transactions. The amendments require exchanges to collect, verify and report information about individuals who are not users of the site, but use their own wallets.
The EU Parliament votes on Thursday, March 31 on modifying the Transfer of Funds Regulation. Their latest draft could significantly violate individual financial freedom, irreparably harm the cryptoeconomy, & stifle the future of innovation across the EU.
— Faryar Shirzad (@faryarshirzad) March 27, 2022
“On Thursday, March 31, the European Parliament will vote to change the provision on the transfer of funds. Their latest project could seriously violate individual financial freedom, cause irreparable damage to the crypto economy, and stifle the future of innovation in the EU,” Shirzad writes.
He believes that if the Regulation on the transfer of funds is adopted, this will tighten the supervision of cryptocurrency exchanges and negatively affect the anonymity of wallets. In addition to disclosing customer information, the new rules will require exchanges to inform the “competent authorities” of every transaction of a non-client wallet owner equal to or greater than €1,000, Shirzad said, regardless of suspected misconduct, according to Shirzad.
The proposal could lead to a complete ban on transfers to one’s own wallets, although there is no evidence that such a ban would have any effect on illegal activity at all. Coinbase is asking the crypto community to respond strongly to this proposal before it’s too late:
“We have precious time to act and we need our voices to be heard. If you care about protecting the privacy of individuals and paying attention to legitimate solutions that truly address concerns about the illegal use of digital assets, now is the time to speak up and be heard. We must speak with a single, strong voice against this proposal before it is too late.”
Last week, information appeared that the South Korean government would oblige cryptocurrency exchanges to disclose information about the sender and recipient of transactions in the amount of $820 or more in accordance with the FATF recommendations.
Source: Bits
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