In a new report, the Open Dialogue Foundation (ODF) provides an overview and analysis of future regulatory proposals regarding non-custodial Bitcoin and crypto wallets in the European Union (EU).
Some of the proposals – many of which are based on FATF recommendations – will negatively affect users’ ability to use crypto assets privately.
EU & FATF 2025: New Rules for Your Bitcoin Wallet?
What’s the best Christmas gift from human rights, privacy and Bitcoin advocates?@ODFoundation It gives you a comprehensive answer to what you need to know while using #Bitcoin p2p wallet, private payment tools &… pic.twitter.com/YZIlCZjSiR
— Lyudmyla Kozlovska 🇪🇺🇺🇦 (@LyudaKozlovska) December 24, 2024
Key takeaways from the report include:
- According to guidelines from the European Banking Authority (EBA), the current regulatory framework surrounding crypto assets in the EU allows actions that pose significant risks, including the immediate withdrawal of non-custodial wallets and the use of tools to enhance anonymity such as mixers.
- Future Markets in Crypto-Assets Regulation (MiCA) may influence Crypto-Asset Service Providers (CASPs) to implement stricter AML/KYC procedures.
- Legislation from the EU could prevent CASPs from facilitating anonymous transactions, which would both reduce the privacy of users of crypto-assets and increase CASP operating costs.
- The obligations that may be imposed on CASPs will conflict with the increasing proliferation of open source technologies such as the lightning network, Fedimint and ecash, which allow users to transact privately and in a way that prevents censorship.
Am I sharing all of this because I’m trying to ruin your holiday season? No sir and mother.
I am sharing it because we should appreciate the work done by the Open Dialogue Foundation in shedding light on what is happening within the regulatory environment in the EU (especially as it relates to illegal crypto wallets) and in developing relations with elected officials in the EU. the EU to teach them about the importance of Bitcoin and other free technologies.
So, if you’re looking to make a tax-deductible donation to a nonprofit before the year is out, consider donating to ODF.
And if you’re thinking “Well, I don’t live in the EU, so this doesn’t affect me” or “I live in the EU, but I’ll just move if the bad regulations pass,” I ask you to consider the following two points, (the first of which I took directly from this recent report of -ODF):
- The European Union plays an important role in shaping global financial regulatory standards (which means that crypto transaction privacy advocates around the world have something at stake here).
- The body making most of the proposals for a new regulatory framework in the EU – the FATF – is international, and will use any wins it gets in the EU to influence regulation elsewhere.
But, again, fear not; thank you.
Donate to ODF to support its efforts, or do what you can to amplify the organization’s messages.
This article is a Take it. The views expressed are entirely those of the author and do not reflect those of BTC Inc or Bitcoin Magazine.