Crypto

Europe: Should a total ban on cryptocurrencies be considered?

Cryptocurrency surveillance is on the rise. While some countries have been interested in scrutinizing cryptocurrencies in the past, cryptocurrencies have never been as scrutinized as they are today. This is closely related to the growth of the cryptocurrency market, and although the latter is going through hard times, monitoring has not stopped, in fact it has grown much more.

This time, Europe has said it is considering banning transactions for crypto wallets that remain anonymous. According to the latter, if there are no more anonymous wallets, the number of illegal activities using cryptocurrencies will decrease significantly, because transactions will be easier to track and associate with a person.

This is probably one of the most important regulatory measures the European Commission intends to take. For now, his intention is to regulate the cryptocurrency market through laws to prevent illegal activities such as money laundering and terrorist financing using cryptocurrencies.

As stated by the European Commission, this restriction applies to every service provider that deals with cryptocurrencies. Many cryptocurrency exchanges or similar providers allow their users to store wallets and make transactions without providing other identifying information, but this may end.

Each user with a cryptocurrency wallet is expected to provide service providers with a series of credentials. This can reduce illegal activities, but also raise market safety standards. Thus, investment opportunities will increase.

It should be noted that whenever we talk about rules, there is a lot of concern because we understand rules as prohibitions, and although this has happened in the past, this does not seem to be the case in Europe. Until now, there has been no talk of a complete ban on the use of cryptocurrencies, which in fact could be good.

Is it possible to ban the Chinese model?

This will not be the first time the region has decided to ban cryptocurrencies entirely. This is what China did last year that prompted many regulators to take a closer look at cryptocurrencies.

At the moment, it is not known what the next regulatory measures will be taken by Europe, but we know that many more rules are coming that may favor or discourage the use of cryptocurrencies and investors. From the looks of it, Europe’s stance is not very restrictive, but that could change if they want to protect the economy more.

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