EU exacerbates crypto rules: new surveillance measures for users!

EU exacerbates crypto rules: new surveillance measures for users!

The European Union has passed groundbreaking innovations in crypto regulation that will come into force this year. Both crypto exchanges and their users are affected by these changes. The new Mica Ordinance (Markets in Crypto-Assets Regulation), which aims to increase transparency in crypto trading, obliges crypto exchanges to collect extensive information about their customers. According to a report by Kosmo , users who transferred digital currencies from self-managed wallets and exceed an amount of over 1,000 euros that they exceed the legitimate owners of these wallets are.

The review can be carried out by signed messages or the so-called Satoshi test, in which a small amount of cryptocurrency is sent to prove the ownership. These measures are crucial to reduce money laundering and other illegal financial activities in the crypto area and to strengthen confidence in these new financial markets. In addition, the EU BetrieT transfer regulation comes into force that demands stricter reviews for all involved in cryptocurrency transmissions, as in the report of bitcoin-2go

central requirements and emerging challenges

The EU has also introduced new guidelines for monitoring crypto transactions, with transactions in particular falling under tightened control from a value of 1,000 euros. The European banking supervision (EBA) has published sharp measures to recognize and prevent criminal activities in this area. These new requirements not only affect crypto exchanges, but also other service providers who work in the crypto sector, such as dealers from luxury goods and even professional sports clubs that are considered potential risks for money laundering.

The new regulations are designed in such a way that they are used within the entire EU, and the national financial investigation authorities are equipped with comprehensive data review and monitoring rights. EBA warns in particular of the risks associated with non-custodial wallets and decentralized financial platforms (Defi). Although these measures are intended to protect basic civil rights, however, lead to consideration regarding possible over-regulation within the crypto industry, such as bitcoin-2go note.