The European Union Parliament has banned unidentified self-custody crypto wallets for transactions within the region as part of its broader anti-money laundering efforts.
The ban targets anonymous cash transactions exceeding €3,000 and self-custody wallets on various platforms.
Dissenting voices have argued that the ban may disproportionately affect law-abiding citizens and hinder financial privacy.
A recent social media post by Patrick Breyer, an EU Parliament member, revealed that the ban received approval from most of the parliament’s leadership committee on March 19. This move is part of the EU’s broader anti-money laundering (AML) legislation.The new regulations ban all anonymous crypto payments and cash transactions above certain limits. Specifically, they prohibit cash payments exceeding €10,000 or anonymous cash transactions beyond €3,000. The ban also targets self-custody wallets on mobile, desktop, or browser applications.
Although the law is slated to take effect in three years, there are suggestions that its implementation might be sooner.
Nonetheless, the new regulation is set to reshape how Europeans engage with digital currencies. It has also triggered apprehensions regarding user privacy and financial inclusivity due to its stringent stance against anonymity. Additionally, the regulation could pose significant barriers to innovation and impede widespread crypto adoption in the region.
Source: CoinGecko news