EU committees endorse a ban on anonymous crypto exchanges through hosted wallets

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The recent Anti-Money Laundering legislation forces certain limits for cash transactions and anonymous cryptocurrency payments.

A larger part of the European Parliament’s lead committees have endorsed a ban on cryptocurrency transactions of any value made through hosted crypto wallets. This comes in the European Council and parliament provisionally agreeing to expand parts of the European Union’s Anti-Money Laundering (AML) and Counter-Terrorist Financing laws to cover the cryptocurrency market.

According to an X post by Patrick Breyer, a member of the European Parliament for the Piratenpartei Deutschland (Pirate Party of Germany), a “majority of the EU Parliament’s lead committees” endorsed the new AML laws on March 19.

Breyer is one of only two members who voted against the ban on anonymous crypto payments.

In a press release after the lead committees endorsed the legislation, Breyer outlined why he opposed the bill, saying it compromises financial freedom and monetary protection. He said he considers the ability to transact anonymously a fundamental right.

The crypto community has had a mixed reaction to the EU’s regulatory measures. A few believe the new AML laws are essential, whereas others fear they may infringe on security and restrict financial movement.

Daniel “Loddi” Tröster, host of the Sound Money Bitcoin Podcast, underscored the common obstacles and results of the recent legislation. He outlined the effect on donations and the broader implications for cryptocurrency use inside the EU and communicated concerns over the smothering effect the rules seem to have.

Do let us know in comments if this legislation will impact on pricing?

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