Good thing i don't live in EU, unfortunately to those. But it looks like useless to me if transacting using non-custodial wallets. Not unless there's only a required wallet to use in every transaction which will be a fuck up to every EU citizen. But if not, this is just absurd law.
Do not celebrate too early because this is coming world wide soon. I thought United States law about Cryptocurrencies was very diabolic years ago. Now it is coming to Europe. Maybe in an even worse version.
It will be like this in big countries at least. Smaller countries will make an effort to profit off this by letting us continue paying anonymously and making Know Your Customer NON mandatory.
-----
This is looking more and more like 1984 scenario.
Unfortunately this is very real and very true. Who ever thinks this is just imaginary should take three steps back and look at the picture of the world again.