European Commission plans to create central database of bitcoin users

Regulation | July 28, 2016 By:

The European Commission is proposing the creation of a central database that will have records of bitcoin and virtual currency users’ identities and wallet addresses, which will be accessible to financial intelligence units of member countries.

“This proposal seeks to prevent the large-scale concealment of funds which can hinder the effective fight against financial crime, and to ensure enhanced corporate transparency so that true beneficial owners of companies or other legal arrangements cannot hide behind undisclosed identities,” EU said in its proposal.

The proposal seeks to require member states to bring into force the regulations necessary to comply with this directive by Jan. 1, 2017.

The European Commission is the executive body of the European Union responsible for proposing legislation, implementing decisions, upholding the EU treaties and managing the day-to-day business of the EU.