Crypto News – Transactions involving cryptocurrency that are made using unverified non-custodial wallets are effectively prohibited by the European Union (EU).
EU Ban Crypto: Sanctions to Be Imposed on Unverified Self-Hosted Crypto Wallets
This step is part of the larger Anti-Money Laundering (AML) directives designed to fight financial crimes. On March 19, a majority of the European Parliament’s top commission endorsed the decision; this suggests a united front against anonymous transactions.
The rule focuses on transactions made using self-custody wallets that are not properly authenticated; this includes transactions made using desktop, mobile, or web applications. The prohibition covers payments made using anonymous cryptocurrencies above 3,000 euros as well as cash transactions exceeding 10,000 euros.
Growing Concerns About the Law
As seen by the votes cast against the rule by Alternative for Germany party member Gunnar Beck and German MEP Patrick Breyer, there has been significant opposition to the proposal. He has brought attention to the problem of financial privacy and autonomy violations, arguing that they compromise the freedom to conduct transactions in anonymity. The degree of disagreement among people regarding the trade-offs between safety and individual liberty is evident from their opposition.
Regarding the new regulations from the EU, the cryptocurrency sector has voiced serious worries. The host of the Sound Money Bitcoin Podcast, Daniel “Loddi” Tröster, described the real-world difficulties brought forth by the law. He brought out the possibility that these restrictions might impede not only individual financial privacy but also the wider use of cryptocurrencies in the EU.
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