In a New reportThe Open Dialogue Foundation (ODF) provides an overview and analysis of upcoming regulatory proposals around non-custodial Bitcoin and cryptocurrency wallets in the European Union (EU).
Some of the proposals – many of which are based on FATF recommendations – will negatively impact users’ ability to transact with crypto assets in particular.
EU and FATF 2025: New rules for your Bitcoin wallet?
What better Christmas gift than human rights, privacy and Bitcoin advocates?@ODFoundation It provides you with a comprehensive answer about what you should know during use #Bitcoin P2P wallet, privacy payment tools and… pic.twitter.com/YZIlCZjSiR
– Lyudmila Kozlovska 🇪🇺🇺🇦 (@LyudaKozlovska) December 24, 2024
Among the important points mentioned in the report are the following:
- According to guidelines issued by the European Banking Authority (EBA), the current regulatory framework around cryptoassets in the EU allows actions that pose significant risks, including instant withdrawals to non-custodial wallets and the use of anonymity-enhancing tools such as mixers.
- Upcoming Markets of Crypto Assets (MiCA) regulations may influence Crypto Asset Service Providers (CASPs) to adopt more stringent AML/Know Your Customer (KYC) practices.
- EU regulations may prohibit CASPs from facilitating anonymous transactions, which would reduce the privacy of crypto-asset users and increase the operational costs of CASPs.
- The obligations that may be imposed on CASPs will conflict with the emergence of the proliferation of open source technologies such as the Lightning Network, Fedimint and ecash, which allow users to transact privately and in a censorship-resistant manner.
Am I sharing all of this because I’m trying to ruin your holiday season? No, ladies and gentlemen.
I share it because we should be grateful for the work that Open Dialogue is doing in highlighting what is happening within the EU regulatory landscape (particularly regarding non-custodial cryptocurrency wallets) and in developing relationships with EU elected officials to educate them about the importance of Bitcoin and freedom technologies. The other.
So, if you’re looking to make a tax-deductible donation to a nonprofit before the year is out, consider it Donate to ODF.
And if you’re thinking either “well, I don’t live in the EU, so this doesn’t affect me” or “I live in the EU, but I’ll only move if it passes bad regulation”, then I ask you to consider the following two points (the first I quoted it directly from the latest ODF report:
- The European Union plays a central role in shaping global financial regulatory standards (which means that advocates of cryptocurrency transaction privacy around the world have something at stake here).
- The organization making many of the proposals for the new EU regulatory framework – the Financial Action Task Force – is international, and will leverage any gains it makes in the EU to influence regulation in other jurisdictions.
But, again, don’t be afraid; Be grateful.
Donate to ODF to support its efforts, or do what you can to amplify the organization’s messages.
This article is a takes. The opinions expressed are entirely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.