The European Union (EU) is looking to advance one of its most controversial crypto policies yet. If passed, 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 duties that many say aren’t feasible. It’s because of this legislature that investors are seeing more privacy coins permeating into the mainstream. One of those, Secret Network (SCRT-USD), is seeing particular attention. Indeed, the SCRT crypto has had a major boom in volume this week.
It’s difficult to know which EU crypto policies are in 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 track. The piece of legislation in focus this week is the EU’s anti-money-laundering amendment.
In late March, policymakers voted to advance this amendment toward its final stages before its signing into law. If fully passed, European crypto holders and servicers will have several barriers to overcome in the investing process. The anti-money-laundering policy amendment will be cracking down hard on private crypto transactions, under the guise of preventing white collar crime conducted with digital money.
Under the new rules, non-custodial wallets like MetaMask and Trezor would no longer be permitted in EU nations. This is because the body wants third party access to funds if it were to suspect a wallet of containing illicit funds. Moreover, it will require exchanges and other crypto platforms to verify a user’s identity for transactions over 1,000 euros. These requirements have caught flack from opposition for heaping unnecessary responsibilities on platforms.
SCRT Crypto Sees High Volumes and a Price Boost as EU Vote Approaches
The amendment is advancing to its final stages tomorrow, with lawmakers gathering to hash out the remaining details of the bill. In the meantime, investors are resisting the policy by pivoting toward privacy coins. These are cryptocurrencies that emphasize keeping transactions completely anonymous and untraceable. One of these, the SCRT crypto, is seeing extra attention.
The Secret Network launched its SCRT coin in late 2020, and it has been a fast success. As of now, the crypto holds a market capitalization of $745 million. It’s fast catching up to privacy coin giants like Monero (XMR-USD) and Zcash (ZEC-USD).
What sets Secret apart from these other networks is its combination of identity-obscuring tech with smart contract capabilities. Indeed, the Secret chain plays host to its own dapp network, allowing users to control their own data and who can view it. The network hosts 20 dapps right now, featuring things like encrypted messaging services, decentralized cloud storage and private DeFi lending platforms.
Investors are turning to projects like Secret to reject the EU’s proposal. Obviously, one of the biggest draws to cryptocurrency is in distancing one’s money from the government. As policy becomes more and more real, though, privacy coins are a sort of final refuge for those who prioritize privatization over all else. The SCRT crypto is seeing a major boost in buyers as this EU news surfaces; $48 million in SCRT is swapping hands, making for an increase of 230%. This volume is levering SCRT prices up by 10%.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.