On March 31, 2022, two European Parliament committees – the Committee on Economic and Monetary Affairs and the Committee on Civil Liberties, Justice and Home Affairs (the “Committees”) – voted in favor of new rules (the “Rules”) that would change the way cryptocurrency transactions are treated by the European Union (EU) and would require that certain identifying information about transacting parties be recorded. Proponents of the Rules state that their implementation will prevent digital currency from being used for money laundering and other unlawful activities. Critics argue that the Rules raise serious privacy concerns and will chill innovation in the crypto space.
