Bitcoin: EU proposes rules to make cryptos more traceable

In divisive news from the cryptocurrency world this week, the EU has proposed changes to its laws by which companies transferring Bitcoin or other crypto-assets would be required to collect details on the recipient and the sender.

The proposals would make crypto-assets more traceable, in order to help clamp down on money-laundering and the financing of terrorism, according to the European Commission. The provision of anonymous crypto-asset wallets would also be banned.

These laws, the Commission argued, would make crypto-asset transfers subject to the same anti-money-laundering scrutiny as wire transfers.

“Given that virtual assets transfers are subject to similar money-laundering and terrorist-financing risks and wire fund transfers… it therefore appears logical to use the same legislative instrument to address these common issues”, the Commission said.

Under the proposals, a company transferring crypto-assets for a customer would be obliged to collect their name, address, date of birth, account number, and the name of the recipient.

The price of Bitcoin dipped following the proposals, which were outlined on Tuesday, falling more than three per cent.

They come after the European Commission has announced a major overhaul of its anti-money laundering framework, as well as the creation of its own ‘digital euro‘ project.

Value rebounds as Tesla ‘Technoking‘ Elon Musk comes to the rescue

However, in more optimistic news for Bitcoin investors and enthusiasts, the cryptocurrency has since rebounded, after Tesla CEO Elon Musk said it was “likely” the electric car company would accept it again.

The carmaker in May announced it would no longer be accepting the cryptocurrency for purchases, citing the inordinate environmental impact of Bitcoin mining, which relies on massive amounts of electricity.

Explaining the reasons he finds it “most likely” that Tesla would resume accepting Bitcoin, Mr Musk explained he thought his renewable energy demands for the coin would be met.

“I wanted a little bit more due diligence to confirm that the percentage of renewable energy usage is most likely at or above 50 per cent and that there is a trend toward increasing that number, and if so Tesla would resume accepting Bitcoin”.

It’s been an erratic year for prices of the world’s most popular cryptocurrency, which set multiple records hitting new highs in the first months of the year.

Since then, however, and especially provoked by Mr Musk’s earlier denunciation of the cryptocurrency as well as a Chinese crackdown on cryptocurrency mining and trading, Bitcoin has fallen more than half since its April peak.