The UN Pushes for a New International Treaty on Cybercrime, Threatening Cryptocurrency and Global Financial Privacy

According to reports, on Tuesday, the United Nations launched the penultimate round of negotiations on a new international treaty on cybercrime. If adopted, the latest draft version will impose comprehensive monitoring requirements on cryptocurrencies and threaten global financial privacy. Article 93 of the draft treaty requires all signatory countries to implement onerous cryptocurrency financial regulatory laws. These laws will apply to any organization engaged in activities related to the circulation of digital financial assets and digital currency, even if they are completely different from traditional financial institutions. Just like the Digital Asset Anti Money Laundering Act proposed by the US Senate, this broad language can be interpreted as including software developers, hosted and self hosted wallet providers, miners, validators, nodes, irreplaceable tokens, NFT trading platforms, and even users.

The United Nations Cybercrime Treaty may lead to comprehensive monitoring of global cryptocurrencies

On Tuesday, the United Nations launched the penultimate round of negotiations on a new international treaty on cybercrime. This latest draft version has raised concerns as it will impose comprehensive monitoring requirements on cryptocurrencies and threaten global financial privacy. Article 93 of the draft treaty requires all signatory countries to implement onerous cryptocurrency financial regulatory laws. These laws will apply to any organization engaged in activities related to the circulation of digital financial assets and digital currency, even if they are different from traditional financial institutions.

The Impact of the New International Treaty on Cryptocurrency

The implementation of the new international treaty on cybercrime will mark a significant impact on cryptocurrency and its related activities. Cryptocurrencies, such as Bitcoin and Ethereum, are decentralized and digital in nature; they are not governed by any central authority. As a result, traditional financial institutions, regulators, and governments have limited control over them.
The new international treaty on cybercrime proposes to change this by imposing comprehensive monitoring requirements on cryptocurrencies. If adopted, it will require signatory countries to implement onerous financial regulatory laws that will apply to any organization involved in cryptocurrency activities, including software developers, hosted and self-hosted wallet providers, miners, validators, nodes, irreplaceable tokens, NFT trading platforms, and even users.

The Broad Language of the New International Treaty

The broad language used in Article 93 of the new international treaty on cybercrime can be interpreted to include all organizations that engage in activities related to the circulation of digital financial assets and digital currency. This includes software developers, hosted and self-hosted wallet providers, miners, validators, nodes, irreplaceable tokens, NFT trading platforms, and even users.
The proposed laws can have a significant impact on the operations of cryptocurrency-related organizations. According to the Digital Asset Anti Money Laundering Act proposed by the US Senate, cryptocurrencies must comply with KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations similar to traditional financial institutions. This effectively eliminates the anonymity that cryptocurrencies offer their users.

Threatening Global Financial Privacy

The implementation of the new international treaty can threaten global financial privacy. Traditional financial institutions have KYC and AML regulations to ensure that their users are compliant with the law. However, the same regulations can be difficult to implement in the case of cryptocurrencies, where users are anonymous and decentralized.
The proposed onerous financial regulations can severely impact the privacy of cryptocurrency users. The new international treaty on cybercrime will give governments and global regulators increased control over the privacy of cryptocurrency users.

Conclusion

The new international treaty on cybercrime can have far-reaching consequences on cryptocurrencies and the privacy of their users. The broad language used in the treaty and the proposed onerous financial regulations can impact the operations of cryptocurrency-related organizations, including developers, hosted and self-hosted wallet providers, miners, validators, nodes, irreplaceable tokens, NFT trading platforms, and even users.
As technology continues to evolve, regulatory bodies will continue to grapple with how to regulate emerging technology. The new international treaty on cybercrime is an example of how regulations can be discriminatory and may limit the potential growth of new technology.

FAQs

1. What is the new international treaty on cybercrime?
The new international treaty on cybercrime proposes comprehensive monitoring requirements on cryptocurrencies and threatens global financial privacy.
2. Who will be affected by the new international treaty on cybercrime?
The proposed laws will apply to any organization involved in cryptocurrency activities, including developers, hosted and self-hosted wallet providers, miners, validators, nodes, irreplaceable tokens, NFT trading platforms, and even users.
3. What is the impact of the new international treaty on cryptocurrency?
The new international treaty on cybercrime proposes onerous financial regulatory laws that can impact the privacy of cryptocurrency users and limit the potential growth of the technology.