New EU crackdown on cryptocurrencies and artificial intelligence

New EU crackdown on cryptocurrencies and artificial intelligence

By KMatt | Blogging Crypto | 14 Mar 2024


The European Union has adopted new regulations to strengthen the application of sanctions, with a particular focus on cryptocurrencies and artificial intelligence.

I will only talk about the latter two, despite the new EU tightening also affecting sectors.

The new regulations aim to target anonymous wallets in order to prevent or at least make more difficult the use of cryptocurrencies to circumvent sanctions. Therefore cryptocurrency operators apply KYC to all their customers, collecting personal information about them (name, address and identity document).
There must be validation of all transactions by cryptocurrency operators to verify that the transactions are legitimate and do not violate any sanctions.
Finally, operators who do not apply the following rules may be sanctioned with fines, suspension of activities and bans on operating.

Regarding AI, investors in AI technologies will need to ensure that their companies comply with new EU rules, so they will need to carry out a risk assessment audit to identify potential ethical and legal risks, implement measures to mitigate these risks (AI control and ethics systems), ensure that their AI systems are transparent and accountable and finally document their compliance procedures.
Also in this case, fines, suspension of activities or a ban on operating are foreseen for companies that do not comply with the rules.

The purpose remains the same, to counter the use of cryptocurrencies for illegal activities and to protect consumers from the risks associated with cryptocurrencies. While for AI, the aim is to protect people's fundamental human rights and ensure that it is used responsibly in line with ethical values

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KMatt
KMatt

Welcome to my blog <3 I love playing videogames, interested in crypto, support #lgbtqi+ and human rights


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