EU politicians do not understand the importance of crypto

The EU recently voted for proposals that will force crypto platforms to disclose all transaction details. Under the guise of fighting money laundering and terrorism financing, the proposals will be a massive blow to the crypto sector. Do the politicians that voted fully understand the crypto industry, and do they care about the right of privacy for individuals?

In response to the EU vote to go ahead with proposals to end all anonymity for crypto users, 46 luminaries from the crypto sector have jointly signed a letter sent to EU lawmakers this week.

The letter is a plea to the lawmakers to reconsider the proposals to end cryptocurrency anonymity. According to Reuters, the letter asks that the proposed new regulations do not go beyond the rules already promulgated by the Financial Action Task Force (FATF).

The letter also said that crypto user’s safety could be compromised as transaction details and wallet addresses would be in the public domain. In addition lawmakers were asked to not apply the new rules to decentralised finance (DeFi).

Brian Armstrong, CEO of Coinbase, tweeted out his opinion the day before the EU vote:

“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:”

It really must be wondered how many of those involved in the vote really understand the incredibly complex world of crypto. Many luminaries from the traditional finance sector have shown themselves to be utterly uninformed about crypto. European bank president Christine Lagarde springs to mind, and until a recent surprising about-face, treasury secretary Janet Yellen was also vehemently opposing the space.

Many will no doubt have followed the mainstream media’s portrayal of cryptocurrencies as tools for money laundering and terrorist financing, which has been largely debunked by experts from the likes of blockchain analysis platform Chainalysis. 

The cryptocurrency space does not follow the largely obsolete traditional banking model, and it has shown itself to be far more efficient and transparent.

Obviously problems do exist, and the amount of hacks and rug pulls that bedevil the sector certainly do need to be addressed. However, despite this, many crypto platforms employ amazingly innovative technology that is putting traditional finance in the shade. 

Surely this innovation needs to be recognised and encouraged. The traditional finance system is on the edge of total collapse, and banks no longer serve their customers. It is hoped that politicians in the EU, as well as across the rest of the world, come to their senses. The new future of finance is here, and it’s crypto.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.