The aforementioned is a new reportThe Open Dialogue Foundation (ODF), provides an overview of the upcoming proposals for regulation in relation to non-custodial Bitcoin wallets and crypto wallets within the European Union.).
Some of the proposals — many of which are based on FATF recommendations — will negatively affect users’ ability to transact with crypto assets privately.
EU & FATF 2025: Your Bitcoin Wallet's New Rules?
What’s the best Christmas present from Bitcoin, privacy, and human rights advocates?@ODFoundation This comprehensive guide will tell you everything you need to know about using #Bitcoin p2p wallet, privacy payments tools &… pic.twitter.com/YZIlCZjSiR
— Lyudmyla Kozlovska 🇪🇺🇺🇦 (@LyudaKozlovska) December 24, 2024
The report includes the following important takeaways:
- The current framework for crypto assets in Europe is based on guidelines issued by the European Banking Authority. Actions that can pose serious risks are allowed, including withdrawals immediately to non-custodial accounts and the use anonymizing tools such as mixers.
- Forthcoming MiCA (Markets in Crypto-Assets Regulation) regulations may influence Crypto-Asset Service Providers’ (CASPs’) AML/KYC to adopt stricter practices.
- Regulations from the E.U. CASPs may not be allowed to facilitate anonymous transactions. This could reduce privacy and increase operating costs for CASPs.
- CASPs could be forced to comply with obligations which are at odds with the proliferation of open source technologies such as Lightning Network and Fedimint. These allow users the freedom to transact privately, without censorship.
Do I want to ruin your holidays by sharing this information? Please, no.
I share this because we should be thankful for the work done by the Open Dialogue Foundation in shedding some light on the regulatory landscape within the E.U. This is especially true in relation to non-custodial cryptocurrency wallets, and it’s also important in establishing relationships with elected officials within the E.U. To educate them about the importance of Bitcoin, and other freedom technologies.
If you want to donate to a non-profit before the end of the year, then consider donating to the ODF.
If you think “I don’t live in Europe, so it doesn’t matter to me” or that “I live in Europe, but I will just move if they pass bad regulations,” then I ask you to take into consideration the following two points (the first one I took directly from the recent ODF report).
- The European Union is a major player in the development of global financial standards. (This means that advocates for privacy in crypto transactions around the world have a stake).
- The E.U. regulatory framework is being proposed by a number of organizations. — the FATF — is an international one, and it will leverage any wins it chalks up in the E.U. To influence regulations in other jurisdictions.
Don’t be afraid, but be grateful.
Donate money to the ODF or do whatever you can to spread the message of the organization.
This article is an overview of the topic. Take. The opinions expressed by the author are their own and not necessarily those of BTC Inc. or Bitcoin Magazine.
