EU Lawmakers Scheduled to Ban Voting on Transfer of Large Encrypted Assets from Anonymous Self Hosted Wallets

According to reports, EU lawmakers are scheduled to ban voting on the transfer of large encrypted assets from anonymous self hosted wallets on March 28th local time. Under the current proposal, traders will be prohibited from making or accepting anonymous cryptocurrency transfers exceeding 1000 euros ($1080). If the customer’s identity can be verified, or if a regulated cryptocurrency provider is involved, the transaction will be allowed. It is understood that the first draft of the law is more stringent, but at an internal meeting on March 22, the terms were relaxed and private transfers of cryptocurrency (such as large payments between two friends) are still allowed. According to Parliament’s plan, EU encryption providers will be prohibited from establishing agency relationships with any foreign suppliers that are not registered or licensed anywhere. These proposals also include the NFT platform within the scope of money laundering rules and decentralized autonomous organizations (DAOs) under the control of specific personnel. These measures require the approval of the European Parliament and the European Council, which represents EU member States.

EU legislators vote on restricting transfers of large self custody encrypted assets

On March 28th local time, the European Union (EU) lawmakers are planning to ban voting on the transfer of large encrypted assets from anonymous self-hosted wallets. The new law is aimed at regulating cryptocurrency transactions and reducing the risk of money laundering and terrorist financing. In this article, we will take a closer look at the proposed ban and its potential impact.

What is the Proposed Ban on Cryptocurrency Transactions?

The proposed ban on cryptocurrency transactions aims to regulate the transfer of large encrypted assets from anonymous self-hosted wallets. Under the current proposal, traders will be prohibited from making or accepting anonymous cryptocurrency transfers exceeding 1000 euros ($1080). If the customer’s identity can be verified, or if a regulated cryptocurrency provider is involved, the transaction will be allowed.
The ban is aimed at reducing the risk of money laundering and terrorist financing by tracking the source and destination of cryptocurrency transactions. The EU lawmakers believe that the anonymity of self-hosted wallets poses a significant threat to the financial system’s integrity.

What are the Implications of the Ban?

The ban on large encrypted asset transfers from anonymous self-hosted wallets is likely to have a significant impact on traders and investors. The ban will make it harder for traders to move large sums of cryptocurrency without disclosing their identity or the source of their funds. This could lead to a decrease in cryptocurrency trading, as traders may be hesitant to disclose their identity or use regulated cryptocurrency providers.
The ban is also likely to affect the NFT (Non-Fungible Token) platform and decentralized autonomous organizations (DAOs). The EU lawmakers have included the NFT platform within the scope of money laundering rules, and DAOs will be under the control of specific personnel.

How Will the Ban be Enforced?

The proposed ban on large encrypted asset transfers from anonymous self-hosted wallets will require the approval of the European Parliament and the European Council, which represents EU member States. The EU encryption providers will be prohibited from establishing agency relationships with any foreign suppliers that are not registered or licensed anywhere.
The enforcement of the ban is likely to be carried out by regulatory bodies and law enforcement agencies. The EU lawmakers have extended the scope of the money laundering rules to include the NFT platform and DAOs. The regulatory bodies will be responsible for ensuring that these rules are followed, and the law enforcement agencies will be responsible for investigating any violation of the rules.

Conclusion

The proposed ban on large encrypted asset transfers from anonymous self-hosted wallets is aimed at reducing the risk of money laundering and terrorist financing. The ban will require traders to disclose their identity or use regulated cryptocurrency providers for transactions exceeding 1000 euros. The ban is likely to have significant implications for traders, investors, NFT platforms, and DAOs. The enforcement of the ban will be carried out by regulatory bodies and law enforcement agencies, and the law requires the approval of the European Parliament and the European Council.

FAQs

Q1. What is the proposed ban on cryptocurrency transactions?
A. The proposed ban on cryptocurrency transactions aims to regulate the transfer of large encrypted assets from anonymous self-hosted wallets.
Q2. How will the ban be enforced?
A. The enforcement of the ban is likely to be carried out by regulatory bodies and law enforcement agencies. The EU lawmakers have extended the scope of the money laundering rules to include the NFT platform and DAOs.
Q3. What are the implications of the ban?
A. The ban is likely to have a significant impact on traders and investors, and it may lead to a decrease in cryptocurrency trading. The ban is also likely to affect the NFT platform and decentralized autonomous organizations.