Duh?
What is the point of using crypto space then? So Mr. Paul wants us to use crypto but let them know who we are after knowing that we are using crypto because we want to say anonymous.
Then what's the point of banking, you can't use a bank account without an ID.
Why the hell does half of the world population use them and why are they still there? /s
Oh lol. Then I wish him a good luck with non-custodial wallets. I'm pretty sure he will fail with them or at the worst case they would be somewhere outside of EU jurisdiction. Nothing can be seriously changed there.
It's a bit more complicated, it doesn't matter if the sender is outside the EU jurisdiction as long as the receiver is a citizen of a business regulated in the EU, the sender will have to identify himself based on current AML regulations. Once every exchange does that then the amount of non-custodial not labeled wallets will drop to under 1%.
But, it's a proposal, the EU doesn't work by having somebody sponsoring a bill and he gets a few votes and that's all, he is just the chief of a subcommittee, these have no legislative power all they can do is propose amendments and amendments must be voted first and then the entire article must be agreed on by the Council and the Parliament. Since it will be a regulation and not a directive it will need complete approval, hard to see it happening.