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It looks to me like investors are pulling money out of bitcoin, which may have hit a bit of a ceiling, and pumping alts like litecoin and bitcoin cash which are easier to pump and dump with their lower network activity and smaller trading volumes. I think that's the reason for bitcoin's latest price decline but we'll have to wait awhile for confirmation.

Surveillance measures in the article you posted track user data across exchanges. I'm not certain that will make a difference as some exchanges already have KYC (know your customer) checks in place when dealing with sums larger than $1k.

There is also concern that if the EU launches a database containing personal data, hackers could steal that information the way that millions of credit card details are leaked online. It could decrease the security of bitcoin/crypto and increase incidence of identity theft, etc.