EU monitors crypto completely? New regulation is causing a stir
Will the EU soon completely monitors crypto? This question has come up over the last few days. While a politician warns against excessive regulation, a regulatory expert gives the all-clear. The situation is significantly less dire than currently portrayed.
EU monitors crypto completely? New regulation is causing a stir
Will the European Union soon completely monitor crypto? A debate about this question has arisen in the scene since the weekend. The decisive factor was a tweet from Patrick Breyer, a German member of the EU Parliament.
In his statement, Breyer criticized a new regulation that has already been confirmed by the EU Parliament’s Economic Committee and its Committee on Civil Liberties, Justice and Home Affairs.
With 71 votes in favor, nine against and four abstentions, the decision was very clear. However, the new requirements have not been finally decided. According to Breyer, another vote in the EU Parliament will follow in April.
The new regulation intends to impose stricter requirements on certain organizations when handling funds in order to prevent money laundering and terrorist financing – at least that is how the legislation justifies their commitment.
Therefore, a cash limit of 10,000 euros is set. Anonymous crypto payments will be completely banned. However, these regulations do not apply to private users, but only to certain organizations that are considered particularly high-risk – this fact has caused misunderstandings over the past few days.
Breyer strongly criticizes his colleagues’ decision. He describes it as a “war on cash and creeping financial incapacitation,” which he opposes. In addition to Breyer, only one member of the Free Voters and one member of the AfD from Germany voted against the new draft. Seven other MPs from the Left, CDU and Greens voted for the draft.
According to Breyer, failure of the new guidelines is now very unlikely. The final vote in April is more of a formality.
That’s why an expert gives the all-clear
Regulatory expert Patrick Hansen does not agree with Breyer’s representations. He has been trying to calm the heated mood over the past few days. He could give the all-clear because the new regulations for the crypto industry would not change anything.
As Hansen explains, the requirements only affect financial institutions and other organizations whose cash flows are considered high-risk – such as football clubs or casinos.
Although the draft affects new industries, the crypto industry itself is already aware of these requirements from the crypto law MiCA , which will take full effect in 2024.
«Article 58 explicitly prohibits crypto service providers from providing anonymous accounts. A crypto custodian is not allowed to offer services to anonymous users,” explains Hansen – but “this is already common business practice worldwide.”
Hansen even believes that the legislative measures are much less draconian than originally planned. Parts of the drafts emerged as a consensus between politics and industry – the EU originally wanted to introduce KYC for every crypto transaction.
The new requirements therefore have no influence on self-managed wallets. Private crypto transactions also remain unaffected. You are not subject to any legal limits.
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Nevertheless, Hansen is not a fan of the new regulations – for example because of the cash limit. In addition, users of crypto exchanges will have to endure stricter controls in the future. Users therefore have to identify themselves more and more often and go through additional KYC and AML measures.
