Cryptocurrency: Privacy Coin Ban EU Says In Leaked Docs

grarpamp grarpamp at
Thu Nov 17 01:17:20 PST 2022

Don't let their FUD and silly "bans" and "laws" tell
you what you can and cannot do with your money
and the fruits of your labor, who you can and cannot
barter trade and do business with, what local p2p
things you can do with other people, what communities
you can build. It's all brainwashing, privacy is your right
not theirs, so tell them to FUCK OFF. Spread and use
privacy freedom.

"A set of tools to combat privacy-coins may include means of a
different technological, regulatory, economic (fiscal) nature, also
including state attacks on underlying privacy-blockchains. The letter
tool, as possible regulatory access points of the blockchain space,
was already mentioned by Finck [16], however, without further analysis
in that domain. The AML/CFT measures should concentrate on the
cryptocurrency of indicated networks, instead of targeting the people
who are members of their communities. The tools can and should aim
towards reducing the particular currencies’ value, consequently
inducing a voluntary outflow of their users."

      Privacy-Enhancing Crypto Coins Could Be Banned Under Leaked EU Plans

Crypto providers would be forbidden from touching the likes of monero or dash
under proposed government amendments to anti-money laundering rules.

   The European Union could ban banks and crypto providers from dealing in
   privacy-enhancing coins such as zcash, monero and dash under a leaked
   draft of a money laundering bill obtained by CoinDesk.

   The plans from Czech officials, who are chairing talks among EU
   governments on the proposed law, would represent the latest nail in the
   coffin for anonymous means of payment following tough new rules agreed
   over the summer.

   “Credit institutions, financial institutions and crypto-asset service
   providers shall be prohibited from keeping …anonymity-enhancing
   coins,” said a legislative draft seen by CoinDesk, dated Nov. 9, which
   has been circulated to the bloc's other 26 member states for comment.

   An EU diplomat told CoinDesk that the measure was intended to avoid the
   risk stemming from crypto assets that are specifically designed to avoid
   traceability. The ban on privacy coins, which prevent snooping into
   blockchain activity, is intended to mirror one on anonymous instruments
   such as bearer shares and anonymous accounts that was included in the
   original bill proposal.

   The Czech proposal responds to a demand from countries negotiating the
   text, said the diplomat, who spoke on the condition of anonymity on
   negotiations taking place behind closed doors.

   The Anti-Money Laundering Regulation was proposed in July 2021 by the
   European Commission as part of a package that would also forbid large cash
   transactions and create a new anti-money laundering agency, AMLA, to vet
   practices at large financial institutions.

   Under the Czech plans, crypto asset providers would be obliged to verify
   customers' identity even for occasional transactions of under 1,000 euros
   ($1,040), and to probe the nature and purpose of the business for larger
   payments. That would make rules more onerous than for other kinds of firms
   such as banks, where due diligence rules only kick in for larger payments,
   apparently due to fears that crypto payments can easily be broken up into
   smaller chunks.

   Crypto service providers doing business outside the EU would need to
   verify whether their counterparty is licensed, and verify what money
   laundering controls they have, the document also proposed, with details of
   the vetting to be set out by AMLA.

   In their parallel amendments to the bill, lawmakers at the European
   Parliament have zeroed in on the processing of dirty money via the
   metaverse, decentralized finance and non-fungible tokens (NFTs). The bill
   must be agreed by both the Council and the European Parliament to pass
   into law.

   If it does, it would represent the latest in a regulatory onslaught
   against online anonymity – which has legitimate purposes, but which
   regulators also worry can be used to process criminal funds, bust
   sanctions, or raise money for terrorists and other pariahs.

   In August, the U.S. Treasury imposed sanctions on Ethereum-based privacy
   tool Tornado Cash, which it said was used to raise money for North Korea's
   weapons program — the first time sanction powers were invoked against a
   decentralized protocol.

   The EU’s own Markets in Crypto Assets Regulation (MiCA), agreed but not
   yet in force, prevents exchanges from allowing the trading of anonymous
   crypto assets unless they’ve identified the holders. A parallel set of
   rules on the transfer of funds imposes extra checks on anyone handling the
   likes of monero or dash.

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