Crypto transfer tracing is now easier because European Union has agreed on new rules subjecting cryptocurrency transfers. According to this rule, Cryptocurrency transfers will be the same as money laundering rules as traditional banking transfers.
On Wednesday European Union signed a provisional agreement for the 27-nation bloc’s first rule on tracing transfers of crypto assets like Bitcoin, Ethereum, etc. The main aim of this rule is to clamp down on illicit crypto transfers and block suspicious transactions.
According to this rule when a crypto asset will be transferred the information will be stored on both sides of the source and beneficiary. This information will be used by authorities investigating criminal activity such as money laundering or terrorist financing.
Assita Kanko, the leader of EU lawmakers said, “For too long, crypto-assets have been under the radar of our law enforcement authorities”.
Now it will be harder to misuse crypto-assets for illegal use. This rule will also protect innocent traders and investors.
According to sources, the European Union institutions are working on the technical details required for approval of this rule.
EU’s trendsetting data privacy policies have become the de facto global standard and will be highly influential worldwide.