EU Plans To Create Database of Bitcoin Users With Identities and Wallet Addresses (softpedia.com)

An anonymous reader writes from a report via Softpedia: "The European Commission is proposing the creation of a database that will hold information on users of virtual currencies," reports Softpedia. "The database will record data on the user's real world identity, along with all associated wallet addresses." The database will be made available to financial investigation agencies in order to track down users behind suspicious operations. The creation of this database is part of a regulatory push that the EU got rolling after the Paris November 2015 terror attacks, and which it officially put forward in February 2016, and later approved at the start of July 2016. Legally, this is an attempt to reform the Anti-Money Laundering Directive (AMLD). The current draft is available here. The current AMLD draft reads: "The report shall be accompanied, if necessary, by appropriate proposals, including, where appropriate, with respect to virtual currencies, empowerments to set-up and maintain a central database registering users' identities and wallet addresses accessible to FIUs, as well as self-declaration forms for the use of virtual currency users."

Comments

Re:Really?

[AmiMoJo]

Nope.

From the proposal:

In respect of designing providers of exchange services between virtual currencies and fiat currencies as obliged entities, the proposed amendments respect the proportionality principle. In order to allow competent authorities to monitor suspicious transactions with virtual currencies, while preserving the innovative advances offered by such currencies, it is appropriate to define as obliged entities under the 4AMLD all gatekeepers that control access to virtual currencies, in particular exchange platforms and wallet providers.

In other words, it will be perfectly legal to use Bitcoin as you please and they don't propose making people register their private wallets etc, just the same as they would never propose people register their physical wallets. They are only interested in having exchanges and wallet providers (virtual banks) collect this information, just like exchanges and banks for fiat currency have to.

The idea is to make money laundering harder. It's a sensible, practical proposal that is merely the existing laws applying to fiat currencies being applied to virtual ones. It would be stupid if they didn't.

I know it's unfashionable to read the article, but this is what gives the EU a bad name and leads to stupidity like Brexit. It look me about 30 seconds to see what this was really about. Doesn't help that TFA and the summary are both stupid I suppose.