In A New reportThe Open Dialogue Foundation (ODF) provides an overview and analysis of upcoming regulatory proposals surrounding unsupervised Bitcoin and crypto wallets in the European Union (EU).
Some proposals – many of which are based on FATF Recommendations – will negatively impact users’ ability to privately transact with crypto assets.
EU and FATF 2025: New Rules for Your Bitcoin Wallet?
What’s the best Christmas gift from human rights, privacy and bitcoin advocates?@ODFoundation Provides you with a comprehensive answer about what you should know when using #Bitcoin p2p wallets, privacy payment tools and… pic.twitter.com/YZIlCZjSiR
— Lyudmyla Kozlovska 🇪🇺🇺🇦 (@LyudaKozlovska) December 24, 2024
Key measures of the report include:
- According to European Banking Authority (EBA) guidelines, the current regulatory framework around crypto-assets in the EU allows for actions that pose significant risks, including immediate withdrawals from non-custodial wallets and anonymous ones such as mixers. -Includes the use of augmentation tools.
- Markets coming into Crypto-Asset Regulation (MiCA) regulation may influence Crypto-Asset Service Providers (CASPs) to adopt stricter AML/KYC practices.
- Regulation from the EU could prohibit CASPs from facilitating anonymous transactions, which would reduce privacy for users of crypto-assets and increase operational costs for CASPs.
- The obligations that may be imposed on CASPs may conflict with the increasing proliferation of open-source technologies such as the Lightning Network, FedMint, and eCash, which allow users to transact privately and in a censorship-resistant manner. .
Do I share all of this because I’m trying to ruin your holiday season? No, sir and madam.
I share this because we should be grateful for the work that the Open Dialogue Foundation does on what is happening within the regulatory landscape in the EU (especially as it relates to absentee crypto wallets) and the elected officials in Does to develop relationships with. EU to educate them about the importance of Bitcoin and other freedom technologies.
So, if you’re looking to make a tax-deductible donation to a nonprofit before the year ends, consider Donating to ODF.
And if you’re either “well, I don’t live in the EU, so it doesn’t affect me” or “I live in the EU, but if it passes the wrong rules I’ll leave,” I thinking I ask you to consider the following two points (the first of which I have taken directly from this recent ODF report):
- The European Union plays a central role in shaping global financial regulatory standards (which means crypto transaction privacy advocates around the world have something at stake here).
- The body making many of the proposals for the new regulatory framework in the EU – the FATF – is an international one, and it will leverage any wins in the EU to influence regulation in other jurisdictions.
But, again, fear not; Be grateful.
Donate to ODF to support its efforts, or do what you can to amplify the organization’s messages.
This article is a take. The views expressed are solely those of the author and do not necessarily reflect the views of BTC Inc or Bitcoin Magazine.
