A flurry of claims about an EU-wide ban on nameless crypto wallets and transactions has been debunked by trade knowledgeable Patrick Hansen. In a prolonged thread on the X social media community, Hansen has defined what the EU’s Anti Cash Laundering Regulation (AMLR) truly entails for the trade.
Understanding the AMLR’s attain
The AMLR, opposite to widespread perception, doesn’t single out cryptocurrency laws. As a substitute, it serves as a broad anti-money laundering and counter-terrorism financing (AML/CFT) framework relevant to a variety of establishments deemed “obliged entities” (OEs).
These entities span monetary sectors, together with crypto-asset service suppliers (CASPs). Additionally they prolong to non-financial establishments susceptible to AML/CFT dangers (comparable to sports activities golf equipment and playing providers).
Importantly, the regulation explicitly exempts suppliers of non-custodial wallets from its obligations.
Influence on nameless transactions
A vital facet of the AMLR is its utility to CASPs, together with exchanges and brokers regulated below the Markets in Crypto-Belongings (MiCA) framework. These suppliers are required to stick to straightforward KYC/AML procedures, together with buyer due diligence (CDD).
This implies the prohibition of nameless accounts and providers for customers of custodial crypto companies. Moreover, CASPs are barred from providing accounts for privateness cash, a follow already commonplace within the international crypto trade panorama resulting from present AML guidelines.
Nothing new?
Regardless of Hansen’s criticisms of sure AMLR provisions, the regulation, as he factors out, largely reaffirms present AML/CFT guidelines for CASPs and OEs.
It has not launched radically new restrictions on self-custody funds, wallets, or peer-to-peer transfers.
In keeping with Hansen, the regulation poses an “extraordinarily restricted” influence on the crypto sector throughout the EU.