With progress, the final text of the Markets in Crypto Assets (MiCA) law was passed in Europe this Wednesday (5). However, another parallel proposal is attracting even more community attention.
After all, the latter wants Bitcoin wallets and other cryptocurrencies to obtain personal data from their users. In other words, wallets will have to perform a KYC (Know Your Customer) procedure to prevent money laundering.
While it’s crazy to think about this possibility, given that one of the biggest advantages of Bitcoin is that anyone can use their network, the European Union thinks not.
While there are several wallets, many of which are open source, a dangerous precedent was set two months ago. On that date, a Tornado Cash mixer developer was arrested in the Netherlands.
So, Now what can stop the authorities from going after wallet developers who don’t follow this law? Probably nothing.
This may seem crazy to the user at first, as there are dozens of ways to create a wallet. However, the situation could escalate as exchanges may not be allowed to receive funds from anonymous wallets in the future.
In addition, while Bitcoin’s transparency can be etched with its pseudo-anonymity, it can become a serious problem. After all, nothing prevents an investor from becoming a target for criminals.
European Union finalizes MiCA invoice
As for Markets in Crypto Assets, the first and largest European regulatory project on cryptocurrencies, the text was ready on Wednesday (5).
In August, lobbyists fought the project’s ban on stablecoins, but the proposal remains active as such countries seek to protect the euro’s dominance in the region.
As for KYC in wallets, mentioned at the beginning of this text, it is worth remembering that this is not within MiCA, but in another project.
“Suppliers of non-custodial hardware or software wallets do not fall within the scope of this regulation.”
Finally, we have entered a new era of cryptocurrencies, characterized by regulation and still unexplored. In addition to the European Union, the US is also trying to close loopholes in current legislation, but nothing is as organized as MiCA.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
