PhotoChromic’s response to the Draft EU legislation for the transfer of crypto assets

At Photochromic, we have been closely watching the developments at the European Parliament and the work being undertaken on the “travel rule” and how that should be expanded to include transfers of crypto assets. The travel rule dictates what personal data is required to be collected when fiat cash is transferred between accounts.

The current version of the “travel rule” obliges banks and payment companies to store information that “travels” between payers and recipients and make it available to authorities for several years. The policy only triggers when a transaction exceeds the threshold of 1,000 euros. Regulators are now adding crypto payments to this — requiring verified wallets so that the information can be obtained.

We too have been concerned that regulators may reach too far, undermining the aspects of Web 3 that make this new environment so powerful.

We read the draft proposals that were published on 1 April 2022 with great interest. In short, we are encouraged that the future of Web 3 in Europe will depend on the identification of users of blockchains.

As the developer of one of Web 3’s leading NFT Self-Sovereign Identity products for the blockchain, this is an area of Web 3 that is close to our hearts. The most powerful feature of a Photochromic identity is the ability to retain full control of how much of our identity is shared. In a future world where aspects of our personal data are required to be shared in order to transact, our power to control what we share is fundamental.

Web 3 is the digital future

Photochromic was founded on our belief that blockchain and Web 3 ecosystems will be the future digital foundation for society and that it is imperative that these systems offer privacy, security, equality and financial access for all.

Our core mission is to provide a blockchain solution that entrenches data privacy, forcefully protecting the right to keep our own data private.

Security

We believe in security, the right to protect our data and we believe that the immutability of the blockchain can be the gold standard for security. We believe that rooting out bad actors is good for any financial ecosystem (not just crypto) and we would like to play our part in combating illicit activities to ensure that we all participate in a safe digital space.

Equality

We believe in equality, the right to be treated equally, whether owning or transacting in physical assets or digital assets, crypto or fiat, defi or a traditional bank, Web 2 or Web 3. No matter how you choose to own your assets and by whatever means you choose to transfer your money, you should not be at a disadvantage as to the regime you choose to use. We therefore strongly believe that new regulations that seek to govern crypto assets and transactions should treat the old and the new financial systems equally.

Unlocking the power of Web 3

We are greatly encouraged that the European Parliament is proposing to merely extend existing regulations that govern the transfer of banknotes and coins to the transfer of crypto assets. While we have a deep passion for Web 3 and the power of decentralisation, we recognise the need to balance the power of Web 3 with the importance of creating a safe digital space. It is our belief that the creation of this safe digital space will be an exponential driver of innovation in Web 3. We believe that the people of Web 3 will leverage these regulations for good. To protect the privacy, security, equality and financial access for all.

In the coming days we will be sharing our full analysis of the new regulations and how Photochromic is perfectly positioned to deliver a decentralised, reliable and independent solution to the requirements set out in the new regulations.

About PhotoChromic

PhotoChromic introduces a unique use case for non-fungible tokens (“NFTs”) by integrating them with user identity, to develop a biometrically managed model of Self-Sovereign Identity (“SSI”) on the Blockchain. Using NFTs, PhotoChromic aims to make identity programmable, verifiable, universally addressable, and digitally secured.

Powered by an ERC-20 token, $PHCR, running on the Ethereum blockchain, PhotoChromic addresses the current challenges faced by people the world over, as they pursue ownership over, and the ability to secure, their identity. PhotoChromic gives control and ownership of user identity back to the individual, where it belongs.

Learn more about PhotoChromic at:

Website | Whitepaper | Medium | Telegram | Telegram Announcement |