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Bitcoin News & Updates / EU is set to delagalise decentralised mixers
« on: May 02, 2024, 07:13:31 PM »
Topic says it all, in a not so unexpected move, the European Union pass the vote to ban mixing services and force crypto-business to implement more surveillance on their customers as part of the Anti-Money Laundering Regulation (AMLR).
Link1:
https://www.consilium.europa.eu/en/press/press-releases/2024/01/18/anti-money-laundering-council-and-parliament-strike-deal-on-stricter-rules/
Link2:
https://www.mapsplatis.com/news/crypto-assets/the-european-union-is-set-to-outlaw-decentralised-mixers-and-compel-cryptocurrency-firms-to-closely-monitor-users-dealing-a-significant-blow-to-the-anonymity-offered-by-decentralized-finance-defi/
In short:
- crypto-firms will be compelled to collect more data on users;
- anonymity services tools will be banned.
Apparently there was also an initiative to force offline wallet providers (aka non-custodial wallets) to do KYC checks on their users, but that was dropped. I suspect it could've been a tactic when they propose something ridiculous, so when it gets rejected people see it as a win and are no longer angry about all the other restrictions that have been passed.
As far as I understand all this, offering mixing services will be illegal, but using such services will not be outlawed.
Link1:
https://www.consilium.europa.eu/en/press/press-releases/2024/01/18/anti-money-laundering-council-and-parliament-strike-deal-on-stricter-rules/
Link2:
https://www.mapsplatis.com/news/crypto-assets/the-european-union-is-set-to-outlaw-decentralised-mixers-and-compel-cryptocurrency-firms-to-closely-monitor-users-dealing-a-significant-blow-to-the-anonymity-offered-by-decentralized-finance-defi/
In short:
- crypto-firms will be compelled to collect more data on users;
- anonymity services tools will be banned.
Quote
The legislation also prohibits the use of tools that enable anonymity, including privacy tokens. Additionally, offering crypto-mixing services, which obscure transaction history, will no longer be permitted. Obliged entities are required to verify the identity of users, monitor transactions, and gather more information about both senders and recipients.
For crypto transfers below €1,000, service providers must conduct basic KYC to authenticate their users. However, for transactions exceeding €1,000, customer due diligence measures are necessary, involving longer-term monitoring of user behavior and identity in addition to the standard KYC.
Apparently there was also an initiative to force offline wallet providers (aka non-custodial wallets) to do KYC checks on their users, but that was dropped. I suspect it could've been a tactic when they propose something ridiculous, so when it gets rejected people see it as a win and are no longer angry about all the other restrictions that have been passed.
As far as I understand all this, offering mixing services will be illegal, but using such services will not be outlawed.