European Commission regulators have proposed changes to EU law that would force companies that transfer Bitcoin or other crypto-assets to collect details on the recipient and sender.
The proposals would make crypto-assets more traceable, the EU Commission said, and would help stop money-laundering and the financing of terrorism. The package also includes the proposal for the creation of a new EU authority to fight money laundering.
According to the BBC, the proposals could take two years to become law.
Commenting on the news, Chris Caruana, VP of anti money laundering solutions at Feedzai, said:
Any initiative aimed at reducing how crypto-assets are leveraged by criminals globally is a welcome step in the right direction. The traceability of crypto-asset transfers has been available with proper technology, levering advancements in AI and data orchestration. The proposed reform attempts to step a layer deeper to remove anonymity.
Crypto-assets continue to gain acceptance as a medium of exchange across global economies while also continuing to meet pockets of resistance. The EU is signaling its determination that gains in acceptance are underpinned with trust and the rule of law by ensuring AML/CFT controls are a fundamental element of industry participants.