undefined | Better HN

0 pointsclosewith3y ago0 comments

Your argument seems to rest on the idea that regulating high-value transactions on a blockchain is an unintended side-effect of AML5 (and the upcoming strengthened AML6).

If so, you are delusional. Lawmakers are not going to carve out an exemption for blockchain transactions when the explicit goal of the EU is to bring them under robust regulation.

Once again, the outcome that is upsetting you is the intended goal of the Directives. If in doubt, Google “AML5 crypto”. After all, it is the Directive that brought crypto exchanges under AML rules and almost certainly is the reason that the OP (irrespective of whether they broke any rules) came under investigation.

Finally, I believe your own biases hide from you how similar this legislation is when applied to fiat, barter, and crypto transactions.

In the EU, you cannot lawfully undertake high-value transactions without KYC. Whether you agree with that or not (and I don’t), it is the law of the land, widely accepted and implemented, and not unpopular. Sort of a legislative change of tack, regulation will continue in this vein.

0 comments

muffinthem3y ago

I am not saying it is not the law - I am saying the law is ridiculous and incompatible with how users are choosing to transact through permissionless blockchains like Ethereum. I recognize that the OP is being criminalized and I am saying he should not be treated as a criminal for selling art through NFTs simply because there is no regulatory framework for dealing with the lack of KYC on transactions above an arbitrary threshold. If you feel this opinion is delusional I’m not sure it’s really worth continuing this discussion.

gizmo3y ago

One of the primary ways of fighting organized crime is by going after the money. If you can stop people from enjoying the spoils of their crime you win. It’s a constant battle. If illicit funds are funneled through shell companies and a dozen different jurisdictions there is almost no way to prove the money is dirty anymore. So governments pass laws to force transparency.

That’s why companies have to report who their Ultimately Beneficial Owners are, and that’s why there are reporting requirements for the kinds of transactions that are used for money laundering.

Money laundering is a big deal and governments around the world are fighting hard against it. Crypto has gotten too big and now it’s getting regulated. People who believed wrongly that the law wouldn’t apply to them are now getting a wake-up call.

j / k navigate · click thread line to collapse