Bitcoin price falls as EU vows to make cryptocurrency traceable
A new package of legislation from the EU Commission will make Bitcoin and cryptocurrency less anonymous.
Daniel Van BoomSenior Writer
Daniel Van Boom is an award-winning Senior Writer based in Sydney, Australia. Daniel Van Boom covers cryptocurrency, NFTs, culture and global issues. When not writing, Daniel Van Boom practices Brazilian Jiu-Jitsu, reads as much as he can, and speaks about himself in the third person.
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As part of a larger effort to stymie
laundering and other financial crimes, the EU on Tuesday introduced a legislation package that would require cryptocurrency exchanges and other services providers to collect information from users of their platform. Cryptocurrency wallets are presently completely anonymous, tied only to complicated passwords and no personal information.
The laws will target "crypto-asset service providers" rather than users themselves. It will be incumbent on transfer platforms to acquire the personal information from the sender and receiver, for instance.
"Cryptocurrency is one of the newest ways to launder money," Mairead McGuinness, the Commissioner for Financial Services, Financial Stability and Capital Markets Union, tweeted on Tuesday. "Our rules will now apply to the whole of the crypto sector. We will ban anonymous crypto wallets and make sure that crypto-asset transfers are traceable."
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"Given that virtual assets transfers are subject to similar money-laundering and terrorist-financing risks as wire funds transfers," the EU Commission wrote, "it therefore appears logical to use the same legislative instrument to address these common issues."
Bitcoin hit a high of over $62,000 in April but started dropping precipitously in the middle of May. The price dropped under $30,000 last month when China re-committed to banning cryptocurrency harvesting, which involves power computers solving complex algorithms to "mine" coins like Bitcoin and Ether. The price of Bitcoin flitted between $32,000 and $35,000 in July, but after dipping slightly last week dropped below $30,000 again as the EU announced its planned legislation.
The entire market has been in the dumps, not just Bitcoin. Dogecoin, the memecoin that could, sits at 17c, far below its May high of 72 cents. After nipping above $4,000 in May, Ether is currently sitting at $1776.