EU to Vote on Crypto Regulations, Banning Anonymous Transfers over €1,00029. March 2023
• European Union (EU) lawmakers are set to vote on a new set of crypto regulations that could ban large crypto transfers from self-hosted wallets.
• The proposed legislation would outlaw all anonymous crypto transactions over €1,000 from one non-custodial wallet to another.
• It also introduces new restrictions on cash transactions such as banning businesses from accepting cash payments of more than €7,000.
Proposed Crypto Regulations in the EU
Lawmakers in the European Union (EU) will vote on a new set of crypto regulations on Tuesday that could have significant impacts on the cryptocurrency industry. The proposal includes restricting certain types of anonymous crypto transactions and introducing limitations to cash payments.
Restrictions on Crypto Transactions
The proposal would ban large crypto transfers from self-hosted wallets unless a regulated service provider is involved. This means that all transfer over €1,000 from one non-custodial wallet to another would be outlawed. Non-custodial wallets are often advocated for by crypto proponents for the security and control it gives individual users while custodial wallets takes control away from individuals, leaving them vulnerable to losing their funds due to trusting third parties with their money.
Limitations On Cash Payments
In addition to the new restrictions on crypto transactions, the proposed legislation also introduces new restrictions on cash transactions. Businesses are said to be banned from accepting cash payments of more than €7,000 under this proposal.
The voting will happen in the Economics and Civil Liberties Committees of the European Parliament and needs approval from both the European Parliament and the European Council before becoming law.
Recent Regulatory Focus
The renewed focus on regulating cryptocurrencies comes after several cases of money laundering involving cryptos and other illicit activities related to digital assets in recent years. The EU has also recently implemented MiCA which acts as a strict regulatory framework for the entire crypto sector in Europe.