Hey guys,
A few days ago I opened a similar thread in Legal.
To me what seems important about this, which if approved has very important implications and will affect the market, is the following:
As the bill provides no guidance as to how a crypto service should verify unhosted wallets, this will mean that many will decide to forego transacting with them altogether. Those that continue transacting with unhosted wallets will be required to report all transactions over €1,000.
Not really,
actually all transactions, no matter the amount:"
Under existing laws, payees need to be identified for any bank transfer over EUR 1,000 ($1,099). The bloc’s national governments have already said they want to scrap that lower limit when extending the rules to crypto assets – on the basis that large transactions could just be broken up into smaller ones, a practice known as "smurfing."
Urged by national laundering officials, who cite crypto’s use in funding terrorism and child abuse, lawmakers seem set to agree to require identity checks for any size of crypto payment. Even the right-wing lawmakers who oppose the move to de-anonymize transactions appear to acknowledge they won’t win the vote."
The other important point concerns custodial wallets:
"
The European Union is considering a regulatory approach that will crack down on cryptocurrency’s “unhosted wallets”—wallets that are not held by a third-party intermediary also known as non-custodial.
Examples of a non-custodial wallet include MetaMask, WalletConnect, or hardware wallets like Ledger and Trezor.
The European Commission has proposed text that will oblige crypto service providers to obtain personal information from customers."
Source:
European Union Proposes Crackdown on Non-Custodial Crypto Wallets.This vote is very important and I hope it does not pass, because it will affect business and set a regulatory example to the rest of the world.