- The European Union is tightening up the regulations on crypto exchanges.
- The EU provided proposals to extend Anti-Money Laundering (AML) requirements to exchanges with transactions over EUR 1,000 ($1,114).
- Coinbase (NASDAQ:COIN) CEO Brain Armstrong replied in a number of tweets.
After the European Union voted in favor of extending Anti-Money Laundering (AML) requirements to cover crypto exchanges on Thursday, March 31, Coinbase CEO Brain Armstrong commented in a series of tweets.
The EU proposals came with 90 positive votes from lawmakers, extending the anti-money laundering requirements to charge crypto exchanges for each transaction priced over EUR 1,000 ($1,114). They also intend to scrap the floor for crypto payments so the payer and recipient of small transactions will need to be identified.
Armstrong expressed his point of view, where he explained in a list of reasons why he believes that this decision will have a negative outcome.
1/ On 31 March, the EU Parliament will vote on its proposal for a new crypto surveillance regime. The proposal is anti-innovation, anti-privacy, and anti-law enforcement. Make your voice heard and contact your member here: https://t.co/b3Ll3xXiW4— Brian Armstrong – barmstrong.eth (@brian_armstrong) March 30, 2022
The first tweet was captioned, saying “1/ On 31 March, the EU Parliament will vote on its proposal for a new crypto surveillance regime. The proposal is anti-innovation, anti-privacy, and anti-law enforcement.” This was followed by 7 replies and attached to a Coinbase page where people can express their opinion about these proposals.
One of the outstanding replies said:
5/ Moreover, any time you receive 1,000 euros or more in crypto from a self-hosted wallet, Coinbase will be required to report you to the authorities. This applies even if there is no indication of suspicious activity.
This was followed by another important reply which stated: “6/ Imagine if the EU required your bank to report you to the authorities every time you paid your rent merely because the transaction was over 1,000 euros.”
Some people claimed the seven replies made good points regarding the new proposals. However, the lawmakers proceeded with their decision, albeit nonchalantly. “Such proposals are neither warranted nor proportionate. With this approach of regulating new technologies, the European Union will fall further behind other, more open-minded jurisdictions,” said EPP economic spokesperson, Markus Ferber, in an emailed statement Thursday.