European Parliament Committees Approve Ban on Cryptocurrency Transactions Through Hosted Wallets
In a significant move, a majority of the European Parliament’s lead committees have approved a ban on cryptocurrency transactions of any value made through hosted crypto wallets. This decision comes as part of the European Union’s efforts to expand its Anti-Money Laundering (AML) and Counter-Terrorist Financing laws to cover the cryptocurrency market.
The new legislation, approved on March 19, includes limits on cash transactions and anonymous cryptocurrency payments. Cash payments over 3,000 euros will be banned in commercial transactions, while payments over 10,000 euros will be completely prohibited in business transactions.
However, not everyone is in favor of these new regulations. Patrick Breyer, a member of the European Parliament, and Gunnar Beck of Alternative für Deutschland voted against the ban on anonymous crypto payments. Breyer argued that the legislation compromises economic independence and financial privacy, stating that the ability to transact anonymously is a fundamental right.
The crypto community has had a mixed response to the EU’s regulatory measures. While some believe the new AML laws are necessary, others fear they may infringe on privacy and restrict economic activity. Daniel “Loddi” Tröster, host of the Sound Money Bitcoin Podcast, highlighted the practical hurdles and consequences of the legislation, expressing concerns over its impact on donations and cryptocurrency use within the EU.
The new legislation is expected to be fully operational within three years, but some experts predict it may come into effect sooner. As the cryptocurrency market continues to evolve, it remains to be seen how these regulations will shape the future of digital transactions in Europe.