The European Union parliament has voted to ban anonymous cryptocurrency transactions in a controversial law that industry experts fear could hinder innovation.
The measure is an extension of the anti-money laundering policy that applies to all payments of more than $1,114 or EUR 1,000.
The new legislation removes the minimum for cryptocurrency transactions so that all the payments made would be visible even in the self-custody wallets.
A separate draft tabled to the lawmakers aims to block all transfers done to non-compliant digital currency service providers in the region.
The national governments noted in December that they were going to remove the EUR 1,000 requirement in cryptocurrency to seal loopholes in the digital payment space.
The center-right European People’s Party members opposed the proposal terming it as unwarranted and unproportioned and could stifle innovation in the bloc.
The news, which has rubbed the crypto industry the wrong way, caused the price of bitcoin to drop by 2%, from $47,500 to $46,400.