EU Implements Ban on Unidentified Self-Hosted Crypto Wallets in All Payment Transactions

The European Union has recently taken a significant step in its battle against money laundering by implementing measures to protect financial transactions. According to reports, the EU has declared that crypto wallets lacking clear evidence of ownership can no longer be used for sending or receiving payments.

This move marks a new era for crypto transactions, aiming to eliminate the high degree of anonymity associated with certain crypto transactions. By doing so, it becomes more difficult for illicit activities to go unnoticed. The regulation, which received approval from the EU Parliament’s top committee on March 19, now mandates that all crypto payments must be connected to real-life identities.

Furthermore, stricter rules have been implemented for cash transactions. For example, it is now illegal to send or receive more than €10,000 in cash, with a limit of €3,000 for private cash transfers. These measures are designed to prevent the concealment of money and ensure that all large transactions undergo close scrutiny and government control.

Despite the general consensus in favor of this strategy, it has faced criticism from certain quarters. European Parliament members Patrick Breyer and Gunnar Beck have expressed concerns about the decision, fearing its impact on individuals’ freedom and privacy regarding their own money and financial choices. They argue that such stringent regulations may have adverse effects on the economy and society as a whole by impeding people’s ability to utilize their funds.

The critics contend that while the goal of combating crime is commendable, banning anonymous payments is not the most effective solution. Nevertheless, this new ruling does not stand alone. The European Parliament recently passed another set of rules aimed at strengthening sanctions in response to the escalating tensions resulting from the Russia-Ukraine conflict. These rules include measures to prevent people from using cryptocurrencies to circumvent financial sanctions.

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Crypto Regulations