The European Union (EU) may ban the trading of privacy-oriented cryptocurrencies.
Privacy-focused cryptocurrencies are targeted by country regulators for facilitating money laundering. The European Union is also working on banning such cryptocurrencies within the scope of proposed government changes in anti-money laundering rules.
EU Bans Privacy Cryptocurrencies
According to a leaked draft of a money laundering bill obtained by CoinDesk, the European Union may ban banks and crypto providers from transacting with privacy-focused cryptocurrencies.
In a draft law seen by CoinDesk dated November 9 and circulated to the other 26 member states of the union for comment; “Credit institutions, financial institutions, and crypto-asset service providers will be prohibited from holding privacy cryptocurrencies,” it says.
An EU diplomat told CoinDesk that this measure is aimed specifically at avoiding risk from crypto-assets designed to avoid traceability. The ban on privacy coins that prevent surveillance of blockchain activities is intended to mirror the ban on anonymous instruments such as bearer stocks and anonymous accounts contained in the original bill proposal.
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