in a new reportThe Open Dialogue Foundation (ODF) provides an overview and analysis of upcoming regulatory proposals around 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 impact users’ ability to transact cryptoassets privately.
EU and FATF 2025: The new rules for your Bitcoin wallet?
What is the best Christmas gift from human rights, privacy and Bitcoin advocates?@ODFoundation provides you with a complete answer on what you need to know while using #Bitcoin p2p wallet, privacy payment tools and… pic.twitter.com/YZIlCZjSiR
ā Lyudmyla Kozlovska šŖšŗšŗš¦ (@LyudaKozlovska) December 24, 2024
Important conclusions of the report include:
- According to guidelines from the European Banking Authority (EBA), the current regulatory framework around cryptoassets in the EU allows actions that pose significant risks, including immediate withdrawals to non-custodial wallets and the use of anonymity-enhancing tools such as mixers. .
- The upcoming regulation of cryptoasset markets (MiCA) may influence cryptoasset service providers (CASPs) to adopt stricter AML/KYC practices.
- EU regulation may prohibit CASPs from facilitating anonymous transactions, which would reduce the privacy of cryptoasset users and increase CASPs’ operational costs.
- Any obligations that may be imposed on CASPs will conflict with the increasing proliferation of open source technologies such as Lightning Network, Fedimint and ecash, which allow users to transact in a private and censorship-resistant manner.
Am I sharing all of this because I’m trying to ruin your Christmas season? No, gentlemen and ladies.
I share it because we should be grateful for the work that the Open Dialogue Foundation does in shedding light on what is happening within the regulatory landscape in the EU (especially regarding non-custodial cryptocurrencies) and in developing relationships with elected officials in the 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 thinking “Well, I don’t live in the EU, so this doesn’t affect me” or “I live in the EU, but I’ll move if a bad regulation is passed”, then I would ask you to consider the following two points (the first of which I took 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 organization that makes many of the proposals for the new regulatory framework in the EU (the FATF) is international and will take advantage of any success it achieves in the EU to influence regulation in other jurisdictions.
But again, don’t panic; be grateful
Donate to ODF to support their efforts or do what you can to amplify the organization’s messages.
This article is a Carry. The opinions expressed are entirely those of the author and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
