European Union May Curb Anonymous Payments and Use of Bitcoin

November 23, 2015 By: Asif Imtiaz

Last week, the European Commission was assessing the role Bitcoin played in the recent terror attack in Paris and Reuters reported that a number of European countries are planning to initiate a crackdown on all virtual currencies and other forms of anonymous payments.

Reuters claimed that their reporters have come across a draft document that outlined measures to be taken against Bitcoin and other virtual currencies on the Internet. Furthermore, the European countries may curb down widespread use of prepaid debit cards, which have high risks of being used by potential terrorist on European soil.

A number of interior and justice ministers from across the European Union are scheduled to meet on November 20 in order to discuss the security situation in Europe. Reuters said that this “crisis meeting” to be held in Brussels, where the government ministers would propose to the European Commission about cracking down on virtual currencies and any other non-banking financial services that allows anonymous transactions.

The draft document mentioned to “strengthen controls of non-banking payment methods such as electronic/anonymous payments and virtual currencies and transfers of gold, precious metals, by pre-paid cards,” reported Reuters.

Last month, the UK government released a report that said digital currencies like Bitcoin and blockchain currencies have a “low risk” factor when it comes to being used in money laundering or used by terrorists.

However, after the Paris attacks, a number of Hacktivist groups have told the media that they have found links between the terrorists and use of Bitcoin. In light of new evidence, the concern about digital currencies among European governments is growing.

If the Brussels crisis meeting ends with a resolution against digital currencies, it may lead to further regulatory oversight on the use of Bitcoin and other digital payment methods.