Users Will Be Registered By EU To Record Bitcoin Transactions

EU Flag Bitcoin Transactions

Bitcoin – In order to create a central database of digital currency users, the European Commission needs to submit their plans. They quote that the main reason behind it is to prevent terrorist financing and money laundering.

According to the EU, the virtual currency transfers consisting BTC are not observed by the public authorities within the commission and that’s why a regulatory framework for the platforms of digital currency needed to be established.

The obliged entities needed to collect, record and process personal data for that purpose and sometimes, there is a need to share such data with the public authorities within the same group.

In relation to offer a regulatory framework for the startups of the digital currency, there is a requirement of EU digital currency startups in order to collect sensitive and private information of the users.

Main problems

The ambitious plan of the EU Commission to develop a centralized database of the users of the decentralized digital currency will present two main problems, i.e. personal data violation and poor quality of its cyber security.

The thousands of public data attacks have targeted the European government agencies, non-profit organizations and law enforcement since the year of 2004. The total number of publicly recorded data breaches is estimated at 229 among those attacks, that exposes the outdated and vulnerable IT systems of the government backed agencies of Europe.

It looks like the fault of the mainstream media, but the cash has become a preferred method of terrorism financing and purchasing of illegal items only. It is only due to one simple reason, the cash remains completely anonymous whereas the digital currencies are not.

It is more sensible for commission to execute the same plan on the cash users, if the main base of the EU Commission’s argument is to centralize the virtual currencies, in order to stop the terrorist financing and purchase of drugs because there are more cases of money laundering and drug purchases with cash.

Bitcoin Advice

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