EU Enforces Ban on Unidentified Self-Hosted Crypto Wallets for All Payment Transactions

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The European Union has just made a move to step up its fight against money laundering by safeguarding financial transactions. Reportedly, the institution has said that crypto wallets without clear proof of ownership can no longer be used to send or receive payments.

A New Horizon for Crypto Transactions

This regulation is committed to getting rid of the intense anonymity that comes with certain crypto transactions, making it that much harder for illicit activities to go unnoticed. The rule, which was approved by the EU Parliament’s top committee on March 19, says that all crypto payments must now be linked to real-life identities. 

The rules for dealing with cash have also been made stricter. For instance, it is now illegal to send or receive more than €10,000 in cash. The limit for private cash transfers is €3,000. These steps are meant to make it impossible to hide money and make sure that large transactions of all kinds are closely watched and controlled by the government.

Addressing the Critics

Even though most people agree with the strategy, it has been criticized from certain circles. Two members of the European Parliament, Patrick Breyer and Gunnar Beck, spoke out against the decision, saying they were worried about how it might affect people’s freedom and privacy when it comes to their own money and what they want to do with it. They believe that tight rules like these could hurt the economy and society as a whole by making it challenging for people to use their own money.

The critics argue that while the intention to fight crime is very valid, the approach of banning anonymous payments is definitely not the most effective solution.

Still, the new ruling does not stand alone. The European Parliament passed another set of rules last week that are meant to strengthen sanctions. This was done in response to the rising tensions in the world caused by the Russia-Ukraine conflict. There are steps in these rules to stop people from using cryptocurrencies to get around financial sanctions.