- Coinbase is calling on the public to oppose an EU correction to the “Transfer of Funds Regulations.“
- This modification would launch entire surveillance governance for exchanges like Coinbase.
Coinbase has called on the cryptocurrency community to oppose an approaching vote in the EU on a correction to the Transfer of Funds Regulations that will affect cryptocurrencies. Coinbase says the revision would lead to a breach of privacy.
San Francisco- based exchange Coinbase is calling to arms a forthcoming vote in the European Union on a correction to the Transfer of Funds Regulations
The EU Parliament votes on Thursday, March 31 on modifying the Transfer of Funds Regulation. Their latest draft could significantly violate individual financial freedom, irreparably harm the cryptoeconomy, & stifle the future of innovation across the EU.
— Faryar Shirzad (@faryarshirzad) March 27, 2022
Appealing to the cryptocurrency community, Coinbase representatives stated;
Bad facts make bad law. We see this in jurisdictions all over the world, especially when it comes to digital assets. Unfortunately, we are about to see this again — this time in the European Union — in the form of a revision to the Transfer of Funds Regulation. If adopted, this revision would unleash an entire surveillance regime on exchanges like Coinbase, stifle innovation, and undermine the self-hosted wallets that individuals use to securely protect their digital assets. The vote will likely take place this week so time is running out,
The “bad facts” that lead to the “bad law”:
- Digital assets like Bitcoin, Ethereum, and others are a primary way criminals hide and move money
- Law enforcement has no way to track these movements
- Requiring collection and verification of personal information associated with self-hosted is not a violation of their privacy
The reality is that digital assets tend to be worse ways for lawbreakers to hide their ill-gotten gains. Cash remains by far the most favorite way to hide land/launder money. Unlike cash, law enforcement can track and trace digital asset transfers using progressive analytics instruments.
In short, digital assets and the inflexible nature of their blockchain technology actually enhance the capability to descry and disrupt lawless exertion. But rather than embracing and exploiting the benefits arising from the increased use of digital means, the EU offer would set them away.
Another dangerous provision requires exchanges to inform the authorities of every transfer from a non-customers own wallet of an amount equal to or greater than 1,000 euro, anyhow of any dubitation of indecorous exertion. The offer indeed leaves the door open for a complete ban on transfers to wallets, although there’s no substantiation that such a ban would have any effect at all on illegal exertion.
With this in mind, the exchange is calling on the wider crypto community to make its voice heard by rejecting the said proposal.
There’s precious time to act and we need to makeour voices heard. A vote on Parliament’s draft proposal could come as early as Thursday, March 31st. If you care about protecting the privacy of individuals and focusing the law on solutions that actually address legitimate concerns about the illicit use of digital assets, now is the time to speak up and be heard. We must speak with one, strong voice against this proposal before it’s too late.