Government just want control when there paper fiat is anonymous. But this is rubbish because some people will still use noncustodial wallet for transactions.
There are more documents to read about this problem in future, not now. If nothing changes, this will come into force after 3 years, in 2027.
We are fine just now but I believe there will be many things to be changed and this legislation is very hard to execute practically. It's impossible to control cryptocurrency flow if people use non custodial wallet.
Can governments and their agencies, ban all websites to accept Bitcoin, cryptocurrencies from non custodial wallets, no KYC?
I doubt they will be able to do this. Citizens will stand up and fight back.
EU Lawmakers to Vote on Limited Ban on Self-Hosted Crypto PaymentsEU committees approve ban on anonymous crypto transactions via hosted walletsPatrick Breyer's post on XHis website.PROVISIONAL AGREEMENT RESULTING FROM INTERINSTITUTIONAL NEGOTIATIONS By [3 years after the entry into force of this Regulation], AMLA shall issueguidelines addressed to obliged entities on:
(a) the establishment of outsourcing relationships, including any subsequent outsourcing relationship, in accordance with this article, their governance and procedures for monitoring the implementation offunctions by the service provider and in particular those functions thatare to be regarded as critical;
(b) the roles and responsibility of the obliged entity and the service provider within an outsourcing agreement;
(c) supervisory approaches to outsourcing as well as supervisory expectations regarding the outsourcing of critical functions.