Surveillance of cryptocurrencies is becoming more and more extensive. Although some countries have questioned the scrutiny of cryptocurrencies in the past, cryptos have never been so scrutinized as they are today. This is linked to the growth of the cryptocurrency market, and although the latter is going through a difficult time, the monitoring has not stopped, in fact, it has grown much more.
This time, Europe said it is considering banning transactions for cryptocurrency wallets that remain anonymous. According to the latter, if there are no more anonymous wallets, the number of illegal activities using cryptocurrencies will decrease as well, because it will be easier to trace transactions and associate them with a person.
This is probably one of the most important regulatory measures that the European Commission intends to take. Its intention so far is to regulate the cryptocurrency market using laws to prevent illegal activities such as money laundering and terrorist financing from being permitted with cryptocurrencies.
As stated by the European Commission, this restriction is granted for every service provider that deals with cryptocurrencies. Many cryptocurrency exchanges or similar providers allow their users to hold wallets and transact without providing other identifying information, but that could end.
It is expected that each user with a cryptocurrency wallet is required to provide service providers with a series of credentials. This could reduce illegal activities, but also raise market safety standards. Thus, the investment possibilities would increase.
It should be noted that whenever we talk about regulations, there are a lot of fears, because we understand regulations as prohibitions, and although this has happened in the past, it does not seem to be the case in Europe. So far there has been no talk of a total ban on the use of cryptocurrencies, which could actually be a good thing.
Is a ban on the Chinese model possible?
It wouldn’t be the first time a region has decided to outright ban cryptocurrencies. This is what China did last year, prompting many regulators to take a closer look at cryptocurrencies.
For now, it is unknown what the next regulatory measures will be taken by Europe, but what we do know is that many more regulations are to come, which could favor or hinder the use of cryptocurrencies. and investors. Apparently, Europe’s attitude is not very restrictive, but that could change if they want to protect the economy more.