EU’s Anti-Money Laundering Regulation Is Not a Ban on Anonymous Crypto Wallets

Contrary to recent reports, the European Union has not banned anonymous cryptocurrency wallets and transactions under its new anti-money laundering regulation.

Patrick Hansen, the EU Director of Strategy at crypto firm Circle, recently took to the social media platform X to clarify the widespread claims about an outright prohibition on anonymous crypto accounts. 

Hansen, who previously worked on EU policy issues, wrote that the fresh anti-money laundering regulation (AMLR) is “not a crypto regulation” but a broad framework applicable to all financial institutions, including crypto-asset service providers (CASPs) like exchanges and brokers.

The AMLR (read the full text here) does not ban self-custody wallets or peer-to-peer transfers of cryptocurrencies. He clarified that the regulation impacts only “obliged entities” like CASPs that must follow standard Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. Providers of self-custody wallets without control over user assets are exempt.

While he acknowledged paying merchants directly from non-KYC wallets could become difficult under the new rules, he stressed individuals can still use self-custody wallets for purchases and services within the EU without restrictions. Hansen writes that the regulation largely maintains existing AML guidelines for CASPs, having a “​​very limited, almost zero” impact on the crypto sector.

The AMLR, part of a package that includes the Markets in Crypto Assets (MiCA) regulation prohibiting anonymous crypto listings, contains provisions allowing use of anonymous wallets — contrary to circulating rumors of a ban. 

Hansen affirmed these measures align with present practices, concluding the EU’s AML law introduces “nothing new” for cryptocurrencies.

He also said that the AMLR now awaits final approval in the European Parliament, which would most likely be at the end of April, and in the Council of the EU. The new regulations would then enter into application by summer 2027, or three years after publication.


Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

EU Mulls Gas Price Caps, Derivatives Halt After Russia Keeps Nord Stream 1 Shut

European leaders are set to discuss special measures in an emergency meeting to determine responses...

Monday, September 5, 2022, 09:18:49 AM

Cryptocurrency XRP Tumbles After Major Exchanges Abandon Token Over SEC Lawsuit

It appears that one of the most traded cryptocurrencies in the world, Ripple’s XRP, has...

Wednesday, December 30, 2020, 02:47:00 PM

Europe To Force Apple Into Using USB-C For Its Chargers

Europe will soon say goodbye to the Lighting cable as the European Parliament has voted...

Wednesday, October 5, 2022, 04:38:00 PM

MEP Moves to Remove Hungary’s Ability to Vote in the EU Council

Hungarian Prime Minister Viktor Orbán is facing renewed pressure from Members of the European Parliament...

Thursday, January 11, 2024, 07:30:00 AM

Bitcoin Reaches Record High Following Trump Win

Bitcoin reached unprecedented heights on Thursday, surpassing $76,600 and leading a broad cryptocurrency market rally...

Thursday, November 7, 2024, 03:18:00 PM