Topic: The EU is on the verge of creating a new AML regulator that will oversee crypto (Read 454 times)

It will work like this: each company will have many officers who will check the legality of all inputs and outputs. If the wallet is not verified, but the exchange user will not be able to withdraw money. It's practically a banking service. Recently, a colleague who works in Europe in one of the crypto exchanges told me that every quarter they send several terabytes of information about customer transactions to the tax authorities, and the tax authorities have neither specialists nor the technical ability to process this data.

I have nothing against the rules being clearly established, and the rules for companies being tightened to the extent that only serious ones can do business in that sector. As for privacy, I wouldn't worry too much about that question, because most investors have nothing against the way they use CEX today, and those who want more privacy will always find a way to do it.

More Regulation I don't know if this would be a good thing or a bad thing, I recently saw it on Twitter but cant remember the link and basically crypto can stay on Europe but with strict rule and from exchange to wallet need to be licensed.

The Good thing is EU at least don't ban crypto, and people can enjoy crypto trade and so on.

The Bad things is privacy and of course if everything need to be licensed this gonna make crypto Centralized right?

https://www.coindesk.com/policy/2023/05/12/eu-crypto-tax-plans-include-nfts-foreign-companies-draft-text-shows/EU Crypto Tax Plans Include NFTs, Foreign Companies, Draft Text
"Laws set to be agreed next week would require crypto companies to register with tax authorities, even if they’re based outside the bloc or offering non-fungible tokens.
The European Union plans to force crypto companies to give tax authorities details of their clients' holdings, according to a draft bill released to CoinDesk under freedom of information laws.
The data-sharing law, based on a model from the Organization for Economic Cooperation and Development (OECD), is set to be agreed by finance ministers next week, and will allow tax authorities to share data within the 27-nation bloc. Commission officials have said the bill received unanimous acclaim at a meeting on Wednesday, though people familiar with the matter told CoinDesk that some finance ministers have not yet received formal approval from parliaments."

These are not the problems of Europe, but the new digital slavery. When people told me about this 5 years ago, I thought they were a little crazy. We have no more than 2-3 years left when the legislation will work, and if you send coins to a centralized service, then after that it will be impossible or very difficult to become anonymous again.

Fuck, fuck, fuck. Europe is trully a joke. Seriously, how EU is good for the citizens? It brings nothing.
This union does everything to drag the citizen down. The goal in our life is to progress, not to be dragged down.
They should rather deal with all these invading refugees who arrive by the thousands in boats. Stop, stop, stop!!!

Here we already have measures concerning bank accounts held abroad (within the union). In which information about you is shared between our countries (if you have a bank account elsewhere, the taxman knows about it)

But now the CEXs are going to be included in this scheme. Which means in the end: your country will know if you have an account with Kraken, Binance, and others... But it will also know how much you have in coins...
I hope for you that you have filled in your tax returns perfectly, and you have not tried to defraud, otherwise, "hello problems! how are you?"

https://www.coindesk.com/policy/2023/05/10/new-rules-on-sharing-crypto-tax-data-unanimously-supported-by-eu-members/
"New European Union rules allowing tax authorities to share data on people's crypto holdings have been unanimously supported by the bloc’s member states, meaning formal agreement on the law is likely next week, a senior official has said.
Last year the European Commission proposed to curb tax evasion using crypto via an eighth amendment to the Directive on Administrative Cooperation (DAC8), widening an existing law that is intended to prevent taxpayers from stashing taxable assets in hidden overseas bank accounts.
“EU ambassadors have unanimously supported DAC8, paving the way for an adoption by the ECOFIN next week,” commission official Benjamin Angel tweeted Wednesday, referring to the regular meeting of economic and finance ministers that is due to take place in Brussels on May 16."

This is precisely the policy implemented by the ECB and their head Lagarde, who is in turn influenced by those who are the most powerful within the EU. Their fear of cryptocurrencies (especially stablecoins) is, in my opinion, somewhat justified considering the position in which the EU and the euro are in relation to the US and the american dollar.

The whole thing rests on very fragile foundations that are often shaken by vested interests that reveal how united we really are. Therefore, the EU wants to regulate all cryptocurrencies in every possible way so that they have as little influence as possible on its financial system - and the digital euro is something that will not become a reality for years to come anyway, and according to everything we could read in the past, each individual will be able to have limited number of digital euros in your digital wallet.

This is what I was referring to before:


If we add to this the fact that the European Union is going to be a big loser from the Ukrainian conflict (apart from Ukraine itself, which is suffering the most in terms of human losses and destruction of its territory), I don't see a very bright future for the EU.

Strict regulations can serve to redistrubute when a market is already developed and has created a good amount of wealth, but imposing strict regulations on a developing market will impede or at least slow down development and wealth creation.

TLTR:
The proposal was adopted by the committee.
PDF can be read here https://data.consilium.europa.eu/doc/document/ST-13198-2022-INIT/en/pdf

important points to note

ps: "A European passport will be put in place to allow a company registered with the AMF to target clients in other European Union countries."
That's for my country. Don't know about others.

In practice, it will not really change much for the general public. I'm talking for the adepts of centralized solutions/services (CEXs and others). It is mainly about being more vigilant with KYC and KYT. Something that the public is already used to.

It is in reality particularly problematic for small and medium-sized companies that will not have the resources and financial means to be as vigilant as large companies with a system (already in place) worthy of a banking institution.

In the end, it will prevent companies from being formed or from growing. For some of them, it even means slowing down or stopping R&D.

An absurdity for those European countries that claim to want to be among the digital pioneers.

The postponement of this law is also ironic when you think that a clause has been added to allow the digital euro to settle quietly. In summary, cryptos are bad but not a European crypto

https://www.oecd.org/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standard.htm
Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard

https://www.oecd.org/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standard.pdf
"In light of the rapid development and growth of the Crypto-Asset market and to ensure that recent gains in global tax transparency will not be gradually eroded, in April 2021 the G20 mandated the OECD to develop a framework providing for the automatic exchange of tax-relevant information on Crypto-Assets. In August 2022, the OECD approved the Crypto-Asset Reporting Framework (CARF) which provides for the reporting of tax information on transactions in Crypto-Assets in a standardised manner, with a view to automatically exchanging such information. The CARF defines the Relevant Crypto-Assets in scope and the intermediaries and other service providers that will be subject to reporting. In doing so, the CARF incorporates recent developments in the global anti-money laundering standards of the Financial Action Task Force. In line with the CRS, the due diligence procedures require the identification of both individual and Entity customers, as well as their Controlling Persons. The CARF requires reporting on an aggregate basis, divided by type of Crypto-Asset and type of transaction. In August 2022, the OECD has also approved amendments to the CRS to bring certain electronic money products and Central Bank Digital Currencies in scope. In light of the CARF, changes have also been made to ensure that indirect investments in Crypto-Assets through derivatives and investment vehicles are now covered by the CRS. In addition, amendments have been made to strengthen the due diligence and reporting requirements (including requiring the reporting of the role of each Controlling Person) and to foresee a carve-out for genuine non-profit organisations."

I mean that companies like Amazon could never have been created and developed in the EU, in the same way that a company like Google could not have done it. When it has been developed and seen how it works, the EU lets it operate, but regulatory and union pressure would never have allowed such companies to prosper by being created from scratch in the old continent.

These companies have been able to thrive from nothing because they were born in an environment of few regulations, which is not the case in the EU.

Amazon is big in Europe. They have about 70,000 full-time employees, so they have no problem and I'm sure they're rather happy since they don't pay taxes.
I would say, they emerged enough here and if they want more, pay the taxes and stop the optimization.

a short mix of sarcasm and truth
Amazon works now for the European central bank to make a prototype of the European digital coin.

Not really. If you talk to me about money laundering from people who kidnap or extort, I am against that and I think we all will be. But if we are talking about someone who has done work on the internet, for example designing web pages, and has not declared the profits because he lives in a country of high taxes and high political spending (which he is against), raising a good capital that he then launders, I am not against it.


That's right.Companies like Amazon can never emerge in the EU because of the regulatory tangle.


It's funny because I was thinking that, regarding the privacy debate, which is very much in vogue. It probably has to do with history and culture.

The American settlers had a lot of privacy when they lived alone with their family, bible and rifle, and no one else for miles around. What they didn't have was a social life. I don't know if that has anything to do with it.

A government has not to be integrated with cryptos. And vice versa, cryptos don't have to be integrated with the government.

The main problem here is for companies that won't be able to grow. If Europe has the chance to be a leader in the crypto industry, the regulation will stop almost everything. It was the same case decades ago with Internet VS Minitel.
With this, some companies will either make fewer revenues, close their doors, or stop their R&D and several stuff.

We, Europeans, aren't really worried about privacy and other points (we laugh at them), but mainly about the fact that the ecosystem (in the EU) will take a huge slap in the face.
Giving the benefits to the countries like The US. And we, Europeans, are a bit tired of the American monopoly.
(when I say "we", I mean at least people old enough, I don't know about the young in their twenties, because many of us are tired of this Europe)
The old battle USA vs Europe, you know...

Oh sure, now they care so much about the people and they want to protect us from scam 
EU is on sure path of self-destruction in every possible way, so I can understand why they are going full power with insane rules and regulations.
I honestly can't keep track with all the changes but I don't see anything good for people regarding this changes, like they care so much about our wellbeing and safety, yeah right tell me about it.

I don't see any harm here since this does not ban crypto transactions, only regulates the EU crypto companies to prevent scams and stuff.

A lot of people overreact when they see groups introducing AML regulations. They are a necessary part of governmental integration with crypto.

We are all against money laundering in Crypto, but not to the extent that governments seek to control Crypto completely, there is no doubt that we want a clean Crypto free of dirty money but while maintaining our privacy and freedom, but it seems that governments will not stop legislating strict regulations about Crypto until it fully regains control of the financial system. These laws seem to want to fight money laundering but in fact they want to control Crypto by governments.

I have no problem accessing the article, I can confirm that it works with Tor and Firefox.

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After reading the article, it is clear that it is about supervision, that is, looking for a way for the member states to somehow agree to supervise crypto companies and financial services, and to share such data with this newly established regulator. In fact, it is an upgrade of AML 4&5, but which, as far as I understand, in the new AML6 wants to standardize exactly what information member states must share in the future.

As an example, Malta is cited in relation to Binance, which for years has used its apparently highly adapted systems to take advantage of the benefits provided by the EU, but at the same time, Malta has shared very little data with EU regulatory bodies regarding their operations. The new rules will enable the EU regulatory body to bring such a member to the European Court of Justice.

In other words (if I understood correctly), EU member states should adopt the same standards for everything related to cryptocurrencies, and not that some member states have very strict laws, while other member states do not implement even some basic regulations on the matter.

I can not seem to get the article loaded for some reason.  What do they mean by 'overseeing'?  Anyone knows what this involves, besides an obvious type of surveillance?  Is it that they are going to more in depth check these companies and how they are running or are they going to just create a framework for Cryptocurrency related businesses?  Is it about Exchanges or about any business dealing with Cryptocurrencies, including for example shops that accept Bitcoin?  Does it affect customers more by implementing AML procedures for them or does it affect the businesses more?

You know that movie where you had more freedom in jail than the 'law abiding citizens' did and you could do nothing that you wanted in the house because everything was spying on you and any word you said that would be against the government, politicians or the system would get you fined?  I think we are dangerously and eerily close to living that in real life.

This is only going to push boundaries once again, is it not .. just like they did for the last .. how many years?  They are pushing boundaries over and over because nobody ever says 'no' to whatever they come up with.

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Regards,
PrivacyG