No more misplaced surveillance? – Facing the growing adoption of Bitcoin (BTC) and cryptocurrencies, all regulators want frame this new asset class firmly. While the EU has seen regulatory changes threaten the industry with: monitoring private wallets even for 1 transferred satoshifor his part the Britain seems more measured on the subject now.
Britain more reasonable than the EU on crypto transfers
In the UK, the local financial markets authority – the Financial Conduct Authority (FCA) – didn’t not at all nice with cryptos since a year. However, this Monday, June 20, 2022, the British government has just let loose a little regulatory strangulation around the neck of cryptocurrencies.
Like the European Union, Britain indeed wanted obliged digital asset service providers (DSPs) for obtaining and collecting the identification data owners of private wallets †unhosted wallets, or “not hosted”). Once a transfer would have been made into or out of a crypto exchange wallet, the sender or payee should have been identified.
Fortunately, and unlike those of the EU, the UK authorities come to your senses† She clearly has reduced this duty. In an official document published by Her Majesty’s Treasury (HM Treasury), we learn that this monitoring of crypto transfers will only cover a much more limited number of transactions.
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Only “high risk” transfers require hypersurveillance
If last March a few votes within the European committees were enough to impose hypersurveillance on… all (Real all) crypto transactions related to PSANs, the HM Treasury explains his new thoughtful stance:
“The arguments advanced against the obligation to collect this information related to (…) the burden placed on companies, which would be disproportionate to the benefits of preventing illegal financing. (…) non-hosted wallets do not pose a high risk of illegal funding. (…) In light of these comments, the government has amended its proposals (…) regarding non-hosted wallets. Instead of collecting information (…) for all non-hosted wallet transfers, PSANs will only need to collect this information for transactions identified as having a high risk of illegal funding. †
The government of Great Britain is not ” disagree “ to treat all private wallet transfers as automatically presumed to be money laundering/terrorism related. But it is what the EU could do?if the European Parliament proposes the amendment of the Fund Transfer Regulations (TFR) votes in committees.
In the UK, crypto enthusiasts (of reasonable amounts) can make transfers using their private wallets without hyper-surveillance. But the simple one buy coffee for a few satoshis he’ll get a gasworks and the violation of privacy in the European Union (if these satoshis come from a crypto exchange account). The desire of certain technocrats to MiCA law and crypto regulations in the urgency and haste after the Terra disaster (LUNA) further increases the risk of being stuck with this monitoring obligation heavy and binding Which liberticide†
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