On Sunday, an expert in the industry refuted claims suggesting that the European Union (EU) had imposed a ban on anonymous cryptocurrency wallets and transactions. Reports circulating on Saturday alleged that recent anti-money laundering (AML) legislation by the EU specifically aimed to outlaw anonymous crypto accounts. However, Patrick Hansen, an industry expert, clarified that the legislation does not explicitly target cryptocurrencies. Instead, he emphasized that the law constitutes a broad framework applicable to all financial institutions, including crypto-asset service providers (CASPs) and sectors vulnerable to AML risks like gambling services.
Hansen highlighted that the AML regulation applies to all regulated CASPs under the Markets in Crypto Assets (MiCA) regulation, requiring them to adhere to standard Know Your Customer (KYC) and AML procedures. Contrary to rumors of a blanket ban on anonymous crypto wallets, the AML legislation accommodates provisions for them, consistent with existing regulations where custodial wallets cannot serve anonymous users. Moreover, MiCA already prohibits the listing of cryptocurrencies with inherent anonymization features.
Hansen further explained that the AML law essentially reaffirms existing AML regulations for CASPs, exerting minimal impact on the EU’s crypto sector. It does not introduce new restrictions on self-custody payments, wallets, or peer-to-peer transfers, allowing the continued use of self-custody wallets for purchasing goods/services within the EU without constraints.
The finalized text of the AML legislation was approved by the EU’s ECON committee in March and awaits final endorsement by the EU Parliament’s plenary and the EU Council.