Expert Clarifies EU Crypto Regulations Misconception

Industry expert Patrick Hansen has clarified misconceptions surrounding an alleged EU-wide ban on anonymous crypto wallets and transactions.

Through a comprehensive thread on the X social media network, Hansen delineates the actual implications of the EU’s Anti Money Laundering Regulation (AMLR) for the crypto industry.

Contrary to popular belief, the AMLR is not exclusively aimed at cryptocurrency regulations but rather serves as a broad anti-money laundering and counter-terrorism financing (AML/CFT) framework applicable to various entities labeled as “obliged entities” (OEs).

These entities encompass financial sectors, including crypto-asset service providers (CASPs), as well as non-financial institutions susceptible to AML/CFT risks, such as sports clubs and gambling services. Notably, providers of non-custodial wallets are explicitly exempt from the regulation’s obligations.

Regarding anonymous transactions, the AMLR impacts CASPs, including exchanges and brokers regulated under the Markets in Crypto-Assets (MiCA) framework. These providers must adhere to standard Know Your Customer (KYC) and AML procedures, including customer due diligence (CDD).

Consequently, anonymous accounts and services are prohibited for users of custodial crypto businesses, and CASPs are prohibited from offering accounts for privacy coins, aligning with existing AML rules.

While Hansen criticizes certain AMLR provisions, he notes that the regulation largely reaffirms existing AML/CFT rules for CASPs and OEs, without introducing significant new restrictions on self-custody payments, wallets, or peer-to-peer transfers. Hansen concludes that the regulation’s impact on the EU crypto sector is “extremely limited.”

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.