The European Union (EU) is seeking to advance one of its most controversial crypto policies to date. If adopted, the idea of a private blockchain presence could be a thing of the past. Not to mention, the legislature will have broad implications for crypto service providers, who will be tasked with reporting tasks that many deem impossible. It is because of this legislature that investors are seeing more privacy coins seeping into the mainstream. One of these, secret network (SCRT-USD), is the subject of particular attention. Indeed, the SCRT crypto experienced a major boom in volume this week.
It is unclear which EU crypto policies are at which stages of voting or negotiation. Indeed, the governing body is juggling so many different crypto laws this year that it’s hard to keep up. The piece of legislation in the spotlight this week is the EU Anti-Money Laundering Amendment.
In late March, policymakers voted to advance this amendment to its final stages before enactment. If fully adopted, European crypto holders and services will have several hurdles to overcome in the investment process. The amendment to the Anti-Money Laundering Policy will crack down hard on private crypto transactions, under the guise of preventing white-collar crime carried out with digital money.
Under the new rules, non-custodial wallets like Metamask and Trezor would no longer be allowed in EU countries. Indeed, the organization wants third parties to have access to the funds if it suspects a wallet of containing illicit funds. Additionally, it will require exchanges and other crypto platforms to verify a user’s identity for transactions over $1,000. These requirements have drawn the attention of the opposition for piling unnecessary responsibilities on the platforms.
SCRT Crypto Sees High Volumes and Price Rise Ahead of EU Vote
The amendment moves toward its final stages tomorrow, with lawmakers meeting to work out the remaining details of the bill. In the meantime, investors are resisting politics by turning to privacy coins. These are cryptocurrencies that focus on keeping transactions completely anonymous and untraceable. One of them, the crypto SCRT, is the subject of particular attention.
The Secret Network launched its SCRT coin in late 2020, and it was a quick hit. Currently, the crypto holds a market capitalization of $745 million. It is quickly catching up with privacy giants like Monero (XMR-USD) and Zcash (ZEC-USD).
What sets Secret apart from these other networks is its combination of identity obfuscation technology with smart contract capabilities. This is because the Secret channel hosts its own dapp network, allowing users to control their own data and who can view it. The network currently hosts 20 dapps, offering things like encrypted messaging services, decentralized cloud storage, and private DeFi lending platforms.
Investors are turning to projects like Secret to reject the EU proposal. Obviously, one of the biggest draws of cryptocurrency is to keep its money away from the government. However, as politics becomes increasingly real, privacy coins are something of a last refuge for those who prioritize privatization above all else. Crypto SCRT is seeing a major increase in buyers as this news from the EU surfaces; $48 million in SCRT changed hands, representing a 230% increase. This volume pushes SCRT prices up by 10%.
As of the date of publication, Brenden Rearick has not held (directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.