FATF proposal jeopardizes the privacy of EU citizens

Last week, Privacy First and the Dutch Association of Bitcoin Companies (VBNL), of which Bitvavo is a member, sent a letter to the Dutch Minister of Finance in which they expressed their concerns about the privacy of EU citizens which would be damaged if the recommendations of the FATF, which are being imposed on the EU under pressure of the US, are followed.

The proposal of the FATF requires that all Virtual Asset Service Providers pass on personal information about customers and non-customers, whereby all information is provided and available to all parties throughout the value chain. As a result, privacy-sensitive customer data will be shared with parties and regulators anywhere in the world.

Although VBNL is not negative about regulation and new legislation, it wants to point out that the (future) anti-money laundering measures already lead to providers of virtual currency identifying their customers, monitoring transactions and reporting unusual transactions. In addition, on the basis of European law, there is already an obligation to provide all required information to investigating authorities at any time, which investigating authorities can also share with each other.

The FATF recommendation, as included in 7b, is therefore superfluous. It is not necessary that privacy-sensitive customer data be shared with parties around the world if, when necessary, this data can be requested and checked by the relevant investigative authorities. This recommendation has also been described by Europol as "overkill".

VBNL and Bitvavo are therefore not convinced of the considerations that are currently being made and hope to convince the Dutch Ministry of Finance that there is every reason not to agree with the present recommendation and to hold back a decision until a more thorough investigation has been done.