Nothing

Patrick

Impact

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<p>A flurry of claims about an EU-wide ban on anonymous crypto wallets and transactions has been <a href="https://twitter.com/paddi_hansen/status/1771929859704389954" rel="noopener noreferrer nofollow">debunked</a> by industry expert Patrick Hansen. In a lengthy thread on the X social media network, Hansen has explained what the EU's Anti Money Laundering Regulation (AMLR) actually entails for the industry. &nbsp;</p>
<h2 id="understanding-the-amlr-s-reach">Understanding the AMLR's reach</h2>
<p>The AMLR, contrary to widespread belief, does not single out cryptocurrency regulations. Instead, it serves as a broad anti-money laundering and counter-terrorism financing (AML/CFT) framework applicable to a range of institutions deemed "obliged entities" (OEs).</p>
<p>These entities span financial sectors, including crypto-asset service providers (CASPs). They also extend to non-financial institutions prone to AML/CFT risks (such as sports clubs and gambling services).</p>
<p>Importantly, the regulation explicitly exempts providers of non-custodial wallets from its obligations.</p>
<h2 id="impact-on-anonymous-transactions">Impact on anonymous transactions</h2>
<p>A crucial aspect of the AMLR is its application to CASPs, including exchanges and brokers regulated under the Markets in Crypto-Assets (MiCA) framework. These providers are required to adhere to standard KYC/AML procedures, including customer due diligence (CDD).</p>
<p>This means the prohibition of anonymous accounts and services for users of custodial crypto businesses. Additionally, CASPs are barred from offering accounts for privacy coins, a practice already commonplace in the global crypto exchange landscape due to existing AML rules.</p>
<h2 id="nothing-new">Nothing new?</h2>
<p>Despite Hansen's criticisms of certain AMLR provisions, the regulation, as he points out, largely reaffirms existing AML/CFT rules for CASPs and OEs.</p>
<p>It has not introduced radically new restrictions on self-custody payments, wallets, or peer-to-peer transfers.</p>
<p>According to Hansen, the regulation poses an "extremely limited" impact on the crypto sector <a href="https://u.today/eu-takes-major-step-in-crypto-regulation-with-mica-legislation" rel="noopener noreferrer nofollow">within the EU</a>.</p>

No, EU Is Not Banning Anonymous Crypto Wallets

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