EU’s New Law Will Force Unknown Cryptocurrency Users To Unveil Their Identities

The recent new in-the-works legislation passed against crypto by the EU has seen BTC dropped in price. Of course, it is quite hard to ascertain what causes a decline in the price of BTC recently, but the most recent decline is most likely from the coming legislation from the EU, the tweets and statements from the commissioner for Financial Services of the European Union, Mairead McGuiness and the eventual misunderstanding of statements and tweets.

Taking this into consideration, the reason for the recent decline in BTC is not far-fetched. More often than not, uncertainty can cause a sharp decline in any currency and/or the institutions tied to it. The value in the game is transparency. And transparency can be promoted by the accurate understanding of what is happening exactly in regards to the issue raised above.

Full Understanding of What Mairead McGuinness Said Exactly

In the recent series of statements and tweets released by Mairead McGuinness, the commissioner for Financial Services of the EU, the crypto space has seen a decline as uncertainty arises. The majority of these issues stems from the stance of the congress on cryptocurrencies, as mentioned by McGuinness in an article compiled for The Hill; “After the adoption of the Anti-Money Laundering Act by the congress at the beginning of the year, the European Union is stepping up to the plate.” Expatiating this in her tweets after, she said, “Money Laundering allows for the hiding of the illegal origin of money by criminal, and the crimes hurt the citizen which is why we are going stricter in financial crime.”

Moving further, McGuinness explained the idea of transparency better. She said, “Transparency is yet another core element in the struggle against money laundering. We need to know the owner and beneficiary of a company and trust.” Though she made her point, there was some sort of miscommunication there.

Is Everything a Result of Misunderstanding?

As stated earlier, uncertainty comes with a cost. The various interpretation given to those statements of hers led to more confusion and eventually the decline of BTC.

An article compiled by Independent revealed a fair share of the confusion after warning of the EU legislation in the works. Independent states, “Companies handling crypto will now get to record their customer’s details including name, date of birth, address and even account number as well as people receiving the digital currencies.”

Much of these affect the wallets without identity though not all of them have illicit intentions. In all, the core of what is communicated is transparency from governments, media, and the member of the crypto community. The sooner it is established, the better for everyone.

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