EU Implements Ban on Unverified Self-Hosted Crypto Wallets
STORY HIGHLIGHTS
The European Union has introduced a ban on unverified non-custodial crypto wallet transactions.
The legislation is expected to be fully implemented within three years.
German MEP Patrick Breyer and Gunnar Beck have voiced opposition to the regulation.
The European Union (EU) has adopted an effective ban on crypto transactions committed through non-custodial wallets that have not been verified. This measure forms part of the broader Anti-Money Laundering (AML) directives aimed at combating financial crimes. A majority of the European Parliament‘s leading commission on March 19 approved the decision, and this stand implies a unified stand against anonymous transactions.
The regulation targets transactions through self-custody wallets that lack proper identification, encompassing those facilitated by mobile, desktop, or browser applications. The plan is tailored to overcome the gap that enables the anonymous movement of funds, which is a way used to commit crimes. The ban applies both to cash transactions above 10,000 euros and to anonymous cryptocurrency payments over 3,000 euros.
