This project is part of a package of measures aimed at combating money laundering (AML) by the authorities.
This week, the European Union parliament overwhelmingly approved a ban on crypto trading through non-custodial wallets. Thus, the old continent completely prohibits trading from this type of wallets in any amount, said parliamentarian Patrick Breyer on X. This legislator is part of the group of opponents of these punitive measures against cryptocurrency users.
In particular, Dr. Breyer is a member of the European Parliament for the Deutsch Piraten Partei and one of the two leaders who opposed this approval. Gunnar Beck was the other parliamentarian who voted against, representing the Alternative for Germany (AfD) party.
In theory, these laws would go into effect three years after approval. However, experts believe that this period could be significantly shortened. In any case, Breyer condemns these measures, considering that they also include the anonymous money payment sector.
Specifically, payments with money from anonymous accounts are limited to €3,000. Meanwhile, any cash payment that exceeds €10,000 will be illegal. Breyer and other parliamentarians consider this measure to be a scandalous violation of people’s financial freedom. Thus, the right to privacy in commercial terms would be seriously damaged, they believe.
The ban on payments made in cryptocurrencies will be specific to unidentified wallets operated by providers (hosted wallets). This includes any self-custody wallets provided by mobile, desktop or browser applications.
Furthermore, the now approved AML package will be applied three years after its entry into force, according to Dillon Eustace. However, the Irish law firm expects these laws to become fully operational before the usual implementation deadline.
Crypto Trading with Privacy Will Be Banned in Europe
According to opponents of these laws recently approved in the European Parliament, they seriously damage privacy. Consequently, the right to make donations, for example, is completely affected. At the same time, they consider that these measures will not have a significant impact on organized crime.
Consequently, people who trade digital currencies will have to abandon the use of any type of anonymous wallet. This group includes mobile application, hardware or browser wallets. “Generally, prohibiting anonymous payments will at best have minimal effects on crime,” comments the aforementioned parliamentarian. He then adds: “but it will deprive innocent citizens of their financial freedom.”
Likewise, he criticizes that, by prohibiting and limiting anonymous payments, they tie people to private financial companies (banks). An element that should not be lost sight of is that money laundering activity has its epicenter mainly in private banking.
Compared to banking crimes, the use of cryptocurrencies occupies a considerably small part. The issue that holders of digital currencies are forced to hand over custody of their money to private companies is not amusing to the community.
From another perspective, the representative of the Piraten Partei pointed out the negative economic and social effects of the ban on sovereign payments.
“This EU war on cash will have unpleasant repercussions! For thousands of years, societies around the world have lived with privacy-protecting cash. With the progressive abolition of cash, there is the threat of negative interest rates and the risk that banks will cut off the money supply at any time. Dependency on banks is increasing at an alarming rate. This type of financial disenfranchisement must end.”
As can be seen, the atmosphere seems to be becoming tense in the EU. Thus, the authorities seem to find a way to domesticate cryptocurrencies in favor of centralized financial entities. Moving forward, it remains to be seen what the impact of this ban on crypto trading from self-custody wallets will be.
By Audy Castaneda
