Privacy is a “constant battle” between the stakeholders of the blockchain and the state

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Participants and blockchain industry regulators continue to compete for privacy rights, while the anti-whiteness rules (AML) of the European Union (AML) seek to prohibit tokens preserving confidentiality and anonymous cryptographic accounts from 2027.

Credit institutions, financial institutions and cryptographic asset service providers (CASPS) will be prohibited from maintaining anonymous accounts or managing cryptocurrencies preserving confidentiality within the framework of the new EU anti-balance (AMLR) regulation which will come into force in 2027, Cointelelegraph reported in May.

The maintenance of the right to access the documents preserving confidentiality like Monero (XMR) was a “constant battle” between the stakeholders of the blockchain industry and the regulators, according to Anja Blaj, independent legal consultant and politics expert at the European crypto initiative.

“Once you have thought about how states want to play their policies, they want to establish control. They want to understand who are the parties that transmit between them,” said Blaj, speaking during the Daily Live X Spaces of Cointelegraph on September 3.

“(The State) wants to understand that in order to be able to prevent any crime and scam, and we want to apply the policies that we create as a company.”

His comments came while the EU increased its regulatory monitoring of the cryptographic industry, relying on the block markets in the regulation of crypto-active (Mica).

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The negotiation place remains

Although the AML frame is final, regulatory experts still see the negotiation potential until it deploys in 2027.

Policy development is a “continuous conversation”, which means that “nothing is fixed in stone, even if the rules are already out,” said Blaj. “There are still ways to speak to regulators, to see how it will be played, how it will be applied.”

Although there is always room for negotiations with political decision-makers, the regulations concerning cryptocurrencies and accounts preserving privacy becomes “more rigorous because it does not serve the interests and planning of states,” she added.

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The push against the confidentiality of cryptography is a distinct proposition of the EU, known as “cat control”, takes up the momentum.

Source: flight chat control / Cointelegraph

The plan would require platforms such as WhatsApp and Telegram to scan each message, photo and video sent by users, even those protected by end-to-end encryption.

Fifteen members declare the bill, but their support does not represent 65% of the EU population, the threshold necessary for adoption. Germany is hesitant, but a change in policy could be decisive.