Coinbase representatives sound the alarm: the European Parliament’s upcoming vote on currency transfer amendments could lead to a total surveillance of crypto exchange users.
Paul Grewal, Chief Legal Officer at Coinbase, claims that a future European Parliament vote on amendments to regulations on currency transfers could lead to a total surveillance of cryptocurrency exchanges. Grewal is also confident that the amendments could cause irreparable damage to the crypto economy and “stifle the future of innovation in the EU.”
On March 31, the European Parliament plans to vote on amendments that directly relate to cryptocurrencies and digital assets. The anonymity of cryptocurrency exchange users will be threatened if lawmakers approve the revisions. Coinbase emphasizes the possible consequences:
- oversight of all transactions;
- verification of non-custodial wallets;
- informing the “competent authorities” of every incoming transfer over €1.000 from all non-custodial wallets.
In effect, this means that the exchange cannot make withdrawals until the user provides personal details of the transfer recipient and verifies their identity. Coinbase notes that such requirements are unenforceable and “run against core EU data protection principles of data minimization and proportionality.”
Paul Grewal invites all Coinbase users to oppose this kind of amendment by leaving a comment in the Twitter thread.
Regardless of the European Parliament vote outcome, Coinbase will begin requiring users from Canada, Japan, and Singapore to indicate the purpose of transactions as early as April of this year. Coinbase has already started notifying users in those regions about the plan, as evidenced by several tweets.