Crypto traders will not be allowed to trade with Zcash, Monero and Dash coins.
The European Union has been considering banning banks and cryptocurrency services’ interaction with cryptocurrencies. This ban will be aimed at protecting user privacy.
After the adoption of tough new rules in the summer, the last nail in the coffin of anonymous payment will be put in place by Czech officials who are leading negotiations among EU governments over the law.
The money laundering bill will prohibit digital currencies that allow anonyme payments Zcash Monero, Dash, and other.
The ban on anonymous currencies, which block blockchain activity being tracked, should be mirrored by the ban on depersonalized instruments like bearer shares or anonymous accounts that was part of the original bill.
“The Czech proposal responds at the request of the countries negotiating it,” stated the diplomat. He spoke under anonymity because the discussions were taking place behind closed doors.
In July 2021, the European Commission proposed the Anti-Money Laundering Regulation as part of a package. This package also banned large cash transactions and created a new Anti-Money Laundering Agency to examine the practices of large financial institutions.
The document states that crypto service providers will also be required to verify the identity of customers on transactions of less than $1,040 (€1,000). Anyone doing business outside of the union will need to verify that their counterparts have a license, and that their activities are in compliance with anti-money laundering regulations.
A document can only become law if it is approved by both the Council and the European Parliament.
If it is passed, it will be the regulators latest assault on online anonymity. This has legitimate purposes but regulators also claim that it can be used to fund terrorists, circumvent or process criminal funds.