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Debunking Claims About EU’s Ban on Anonymous Crypto Wallets
An industry expert recently addressed the rumors circulating about the European Union banning anonymous crypto wallets and transactions. The expert clarified that the EU’s anti-money laundering (AML) law does not specifically target cryptocurrencies.
Clarification on EU Anti Money Laundering Law
The law is a broad framework that applies to all financial institutions, including crypto-asset service providers (CASPs) and services prone to AML risks like gambling services. It does not specifically target cryptos.
Provisions in the AML Law
- CASPs regulated under MiCA need to follow standard KYC/AML procedures.
- CASPs are not allowed to provide accounts for privacy coins.
- The law prohibits crypto listings with built-in anonymisation functions.
Impact on the Crypto Sector
The AML law largely reaffirms existing AML rules for CASPs and has an “extremely limited” impact on the crypto sector in the EU. There are no radical new restrictions on self-custody payments, wallets, or peer-to-peer transfers.
Future Approval Process
The final text of the law was agreed upon by the ECON committee in the EU and awaits final approval in the EU Parliament’s plenary and the EU Council.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
