Top US-based crypto exchange, Coinbase, has requested that the crypto community reject the EU’s proposed amendment of the funds’ transfer policy, stating that a modification of that policy will negatively affect crypto transactions, especially a breach of privacy. The exchange, whose headquarters is based in San Francisco, further appealed that the crypto community should be ready to engage in active hostilities to ensure that the EU does not amend this policy.
Highlights From Coinbase’s Statement
A part of Coinbase’s statement reads, “bad laws represent bad facts. This has happened and continues to happen in several regions globally, especially when it concerns cryptos. Sadly, history is about to repeat itself. This time, the EU is proposing a modification of its funds’ transfer policy.”
“If the proposal is accepted, crypto exchanges will be under strict surveillance, sabotaging the privacy of wallets (and preventing individuals from keeping their digital assets safe) and stifling innovation. Hence, we call on all those involved in the crypto space to vehemently oppose this proposal, and they should start now because the voting is scheduled for this week,” the statement added.
An Explanation Of Coinbase’s “Bad Facts, Bad Laws” Expression
Coinbase used three points to explain its “bad facts, bad laws” expression:
- Fraudsters’ primary way of hiding or moving their stolen wealth is cryptocurrency.
- There are no ways security operatives can monitor crypto transactions.
- No privacy is violated when crypto firms collect and verify the personal details of their users.
Coinbase explained how these points are wrong facts that make for bad laws. According to the popular exchange, it is almost impossible for criminals to hide or launder their ill-gotten wealth through cryptos. Cash is their best option. While cash isn’t traceable, there are progressive analytics instruments for tracking transfers of virtual currencies.
The point is that blockchain technology’s inflexibility makes it possible to identify and cut off fraudulent crypto transactions. However, the EU’s proposal would only enable the fraudsters to get away with fraudulent acts. Part of the proposal which can negatively affect the crypto space is the requirement for exchanges to notify authorities of crypto wallet transfers of at least 1,000 Euros.
The Implications Of The EU Proposal
If this proposal is accepted, the EU or any other regulatory body can ban wallet-to-wallet transfers without proof that such transfers can enhance money laundering by criminals. Hence, Coinbase calls on crypto players to lend their voices to a rejection of the proposed policy change.
A spokesperson of the exchange said, “we have little time to make our grievances known. The EU parliament is likely to decide by the end of this month. If you truly care about the privacy you enjoy with digital assets, speak now and let your voices be heard. This proposal isn’t how authorities can tackle the fraudulent use of virtual currencies. We urge everyone to speak in unity and reject this proposal now. Otherwise, it would be late, and the proposal may have been approved already.”
