Coinbase CEO Brian Armstrong says the EU’s new law on unhosted cryptocurrency wallets is anti-innovation, anti-privacy and anti-law enforcement.
The EU Parliament’s Committee on Economic and Monetary Affairs and Committee on Civil Liberties, Justice and Home Affairs just voted in favor of a proposal requiring crypto exchanges to collect and submit the information of customers who use self-hosted digital wallets.
Armstrong tells his 1 million Twitter followers that exchanges are pushing back on the measure because it will usher in a surveillance regime for crypto.
“The latest draft by Parliament of the Transfer of Funds Regulation treats crypto, and every person who holds crypto, differently from fiat.
Every crypto transaction (and not just those with a 1,000 euro threshold, as is the case with fiat) would be ‘travel rule eligible.'”
He cites how the policy will impact crypto users and exchanges like Coinbase.
“Before you can send or receive crypto from a self-hosted wallet, Coinbase will be required to collect, store, and verify information on the other party, which is not our customer, before the transfer is allowed.
Moreover, any time you receive 1,000 euros or more in crypto from a self-hosted wallet, Coinbase will be required to report you to the authorities. This applies even if there is no indication of suspicious activity.”
Armstrong says that the new law contradicts the privacy standards espoused by the EU.
“This eviscerates all of the EU’s work to be a global leader in privacy law and policy. It also disproportionately punishes crypto holders and erodes their individual rights in deeply concerning ways. It’s bad policy.”
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