Critics warn that the new EU LMA rules could push parts of the cryptographic economy on the black markets.
The European Union is expected to introduce new measures within the framework of its anti-flowage rules (AMLR) to follow the cryptocurrency transfers. The EU aims to collect data on sender and recipients of funds, expanding transparency within Crypto-Set Service providers.
From July 1, 2027, cryptocurrency exchanges and childcare services will be prohibited from dealing with anonymous portfolios and parts of confidentiality. The regulations also impose “intrusive checks” for self-hosted portfolios, requiring transaction verification of more than € 1,000.
However, this decision has aroused concerns within the cryptocurrency industry, criticism arguing that it could limit privacy and push the sector into less transparent markets.
The developer of Monero Riccardo Spagni and other figures from the industry fear that regulations can encourage privacy companies to move to courts that support privacy rights.
They warn that the EU approach could hinder innovation and push parts of the economy of cryptography on the black market.
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