The end of anonymity for Bitcoin users may be fast approaching as the EU has put forth a proposal that would require anyone using the cryptocurrency in the member states to register on a database.
The European Commission (EC) is behind the push to take away anonymity from Bitcoin and other virtual currencies with the hope that this could help prevent a number of crimes that use digital wallets as a means of avoiding a paper trail. The proposal would require all users of the cryptocurrency to register using their real-world identity and to provide the addresses of the virtual wallets containing their funds.
Since Bitcoin is untraceable by nature, cybercriminals have embraced the virtual currency to commit cybercrime. This is especially so with ransomware where users often have to pay using cryptocurrency to unlock their files after falling victim to an attack. The global rise in this form of malware has affected individuals, companies, and even governments, which is why the EU is willing to do anything in its power to prevent it from becoming a larger problem than it already is.
The EU is currently working on reforming its Anti-Money Laundering Directive (AMLD)