Based

Patrick

2024

The crypto world was rattled by the news of the potential ban on the use of non-custodial crypto wallets in the <a href="https://coingape.com/eu-proposes-stricter-rules-for-non-eu-crypto-firms/">European Union</a> (EU), a piece of news that now has more factual insights.&nbsp; 
<h2 id="strong-current-claims-in-the-eu-crypto-wallets-ban-strong">Current Claims In the EU Crypto Wallets Ban</h2> 
As part of the broader <a href="https://coingape.com/crypto-and-money-laundering-key-focus-in-upcoming-house-hearing/">Anti-money Laundering</a> regulation (AMLR), it was reported that the <a href="https://coingape.com/eu-implements-ban-on-unverified-self-hosted-crypto-wallets/">EU has released new laws</a> that target anonymous crypto and cash transactions.&nbsp; 
Consequently, crypto transactions committed through non-custodial wallets that have not been verified are banned. In addition, it was said that a majority of the&nbsp;European Parliament‘s leading commission on March 19 approved the decision. 
They were described as having a unified stance against these anonymous transactions. The regulation allows for banning self-custody wallets that do not have proper identification, encompassing those facilitated by mobile, desktop, or browser applications.&nbsp; 
Furthermore, the public was made to believe that the ban encompasses cash transactions above 10,000 euros and anonymous cryptocurrency payments over 3,000 euros. 
<h2 id="strong-eu-ban-impacts-only-non-kyc-based-wallets-strong">EU Ban Impacts Only Non-KYC Based Wallets</h2> 
However, Patrick Hansen, the director of EU Strategy and Policy at Circle pointed out that the news was just FUD. He went on to clarify that self-custody wallets are not banned from the EU nor are payments to/from self-custody wallets banned. To put it in perspective, the Circle executive explained that P2P transfers are not a part of AMLR, and this same exemption applies to self-custody software and hardware wallets.&nbsp; 
<blockquote class="twitter-tweet" data-width="550" data-dnt="true"> 
 I will have more to say on this the next few days and I am not a fan of the AMLR, but don’t believe the FUD that is being shared. 
 Self custody wallets are not banned. Payments to/from self custody wallets are not banned. P2P transfers are explicitly excluded from AMLR, as are… <a href="https://t.co/U2p3tg3ZJ4">https://t.co/U2p3tg3ZJ4</a> 
 — Patrick Hansen (@paddi_hansen) <a href="https://twitter.com/paddi_hansen/status/1771597759923073237?ref_src=twsrc%5Etfw">March 23, 2024</a>
</blockquote> 
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
The transactions that fall under the so-called ban are paying with crypto, maybe to merchants with a self-custody wallet that has not passed through the necessary Know-your-customers (KYC) procedure. This activity could become more difficult or outrightly banned depending on the merchants set up.&nbsp; 
Noteworthy, this is not the first time such a rule has been discussed as it had previously been agreed on a few months ago. Efforts are gradually intensifying with the EU seriously working on getting its <a href="https://coingape.com/mica-regulation-how-eu-regulatory-regime-impact-stablecoin/">Market in Crypto Asset</a> (MiCA) regulation ready for its official launch by the end of this year. <a href="https://coingape.com/stablecoin-regulation-eu-drafts-complaints-rules-under-mica/">Stablecoin regulation</a> is one aspect of the regulatory framework that the authorities in the region are actively working on.&nbsp; 
According to the initial news about the supposed ban, the implementation of the endorsed legislation is scheduled to happen within three years of its official promulgation. Observers may still have to look forward to this timeline for the ban on KYC non-compliant crypto wallets. 
The post <a href="https://coingape.com/are-non-custodial-crypto-wallets-really-banned-in-the-eu/">Are Non-Custodial Crypto Wallets Really Banned In The EU?</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Are Non-Custodial Crypto Wallets Really Banned In The EU?

Table of Contents

Coingape News Media

Other articles published on Mar 23, 2024

Ripple and SEC Legal Battle Sees New Development

Tron (TRX) & Ethereum (ETH) Investors Eye Pushd for E-Commerce Disruption, with Presale Offering ...

Analyst Spotlights Top Altcoins for 2024 Performance

The Avalanche & Chainlink Network Communities Embrace Pushd, Expecting to Witness Unprecedented G...

Nvidia Simplifies 3D Modeling with AI-Prompted Generation

Prediksi SOL hingga Terobosan BlockDAG jadi Perhatian Investor Kripto

Join our free newsletter for daily crypto updates!