European Union BANS Anonymous Crypto Transactions?

March 24, 2024 10:04 pm Comments

As part of the European Union’s Anti-Money Laundering Regulation, anonymous crypto wallets will soon be banned in the supranational organization, according to sources.

This recent development is on-brand for the European Union—an organization that represents the most hostile entity toward cryptocurrencies, blockchain, and true financial freedom in the Western world.

Some sources claim that this regulation won’t affect cryptocurrencies and self-custodial wallets, but this remains to be seen.

It also remains to be seen how the E.U. will be able to enforce its laws due to the existence of decentralized exchanges, VPNs, tumblers, and the ability to trade some cryptocurrencies through paper wallets and seed phrases.

At the time of this writing, the European Union’s new policy proposal is set to fully take hold in three years. Here’s what we currently know:

Crypto Briefing shared one of the few dissenting opinions among European lawmakers:

MEP Patrick Breyer (Pirate Party of Germany), one of only two members who voted against the ban, argues that the legislation compromises economic independence and financial privacy.

Breyer claims that the ability to transact anonymously is a fundamental right and believes that the ban would have minimal effects on crime but would, in effect, deprive innocent citizens of their financial freedom.

Wu Blockchain reports: “The European Union now bans the use of unidentified self-hosted cryptocurrency wallets for cryptocurrency payments of any size, according to Finbold.

A majority of the EU Parliament’s leadership committee approved the ban on March 19. The new anti-money laundering law prohibits any anonymous cryptocurrency payments.”

Cryptopolitan offered a different perspective:

Contrary to the rumors of an outright ban on anonymous crypto wallets and transactions, the AMLR includes provisions for these technologies. The regulation exempts non-custodial wallet providers from its requirements.

This distinction is critical for understanding the EU’s regulatory approach. Non-custodial wallets allow users to control their private keys and, thus, their assets directly. This exemption demonstrates the EU’s nuanced stance towards digital asset regulation.

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