What will happen? When the state wants access to privacy in the crypto world?

In the past, we have likely encountered news from many different agencies. They often talk about regulating and regulating transactions in the crypto industry. causing many people to believe strongly in decentralization (Decentralized) cryptocurrencies are worried and suspicious that their privacy is being controlled. Threats by intermediaries Is that what we are trying to escape from in the old world to create equality and transparency in the new world instead? One of the interesting news stories recently was the news of the EU Parliament approving a draft proposal to ban anonymous crypto transactions. After enforcing the law, exchanges must submit transactions worth 1,000 EUR to the authorities for verification. Even very small transactions must be checked and required to enter information to confirm the transaction to the authorities. Brian Armstrong, CEO of Coinbase, previously expressed his concerns on Twitter before the rule was issued. Including quite a bit of disagreement.

So what is this worrying law and what effect does it have on us? 

Long-term concerns If looking at it from the perspective of the state Such laws help promote control. and prevent transactions that are considered illegal transactions Especially regarding money laundering which is clearly beneficial to the government But from the user's point of view These laws create injustice. and greatly diminishes the legitimate right to privacy. Because the state can monitor behavior that meets the conditions at any time. Including being able to control all financial activities if necessary. For example, suppose we are a political activist. and has been labeled as an illegal activity according to interpretation under the law. The state can suspend access to assets. and conducting our financial activities through cooperation with agencies and companies under the supervision of such laws at any time We can see an example of this in China, which uses AI to detect and use Social Score to control behavior. This includes the right to access state-supervised facilities. Of course, there is also access to financial products. It can be said that even if you have billions of dollars. But I can't access and use anything anywhere. It's hardly any different from people who don't have money.

Returning to the draft proposal The impact that will occur is that the Exchange will connect with Third-Party which is the responsible agency. To ask users to confirm every transaction that meets the conditions, for example A transfers crypto via Exchange to B worth 1,000 EUR, whether the transfer is through the Blockchain network or using a service like P2P, the Exchange platform will send the information. The official passes through the third-party and forces users A and B to confirm this transaction both when sending and receiving. Failure to confirm the transaction may be subject to verification. Or the transaction will be rejected immediately, etc. It's not enough that both A and B will also be checked to see where the smallest transaction is. And if there is a transaction with a value similar to that small transaction The information will be sent to the officials. And the user will be asked for verification information as well.

Although such impact Legislation that may be enforced in the future has not yet occurred. But that doesn't mean it won't happen. Because we have seen it from what is in the current government system. Controls all start with these small requirements. Control that begins with control over money is control over power and freedom in spending. And it's possible that this provision is just the beginning of a future version of the proposal that could be even more stringent. When that's true Results will occur in two ways. First, people will crave privacy. and more freedom than before Until trying to find a way to access financial products from sources other than from Centralized Exchanges or financial institutions On the other hand, it was controlled in the same way. Resulting in opposing behavior being transformed into a form of compliance. Because of the fear of committing a crime and being punished, which will affect decision making. Including the possibility of losing freedom of expression. or argue about various events as well

However, this is only my opinion on this draft proposal. I still think that the crypto industry, if supported correctly, Before issuing regulations for surveillance It will help change society in a better direction than this.