Over 90 European lawmakers have voted in favor of outlawing ‘unhosted wallets’ within the European Union. Under the proposal, crypto platforms including exchanges need to obtain, hold, and submit information on those involved in cryptocurrency transfers from such wallets.
<h2><strong>EU Lawmakers Cracks Down on Non-Custodial Wallets</strong></h2>
European Parliament Committees, The Economic and Monetary Affairs, and the Committee on Civil Liberties, Justice, and Home Affairs have recently <a href="https://www.europarl.europa.eu/cmsdata/246608/ECON-LIBE%20Voting%20Session%20-%2031%20March%20(amendments)%20RESULTS.pdf" target="_blank" rel="nofollow noopener">voted </a>on expanding anti-money laundering (AML) requirements in the crypto space.

https://twitter.com/paddi_hansen/status/1509536318585454597

Under the proposal, cryptocurrency service providers including exchanges need to collect personally identifiable information from individuals who conduct transactions for more than 1,000 euros using ‘unhosted’ cryptocurrency wallets.

Unhosted wallets mainly refer to non-custodial wallets, which do not rely on third parties. Some of the popular non-custodial wallets in the market include MetaMask, WalletConnect, Ledger, and Trezor.
<h2><strong>Industry Opinion on the Matter</strong></h2>
Brian Armstrong, CEO of U.S.-based crypto exchange Coinbase, expressed his opinion on the European Union’s recent move saying that the proposal is "anti-innovation, anti-privacy, and anti-law enforcement."

https://twitter.com/brian_armstrong/status/1509202912802578441

The crypto exchange’s Chief Legal Officer Paul Grewal also warned that fiat currencies and not crypto, were by far the most popular way to hide financial crime, according to a <a href="https://blog.coinbase.com/making-your-voice-heard-ahead-of-thursdays-critical-eu-vote-f03730e83e5c" target="_blank" rel="nofollow noopener">blog post</a> on Monday.

Meanwhile, not all parliamentarians were in favor of the new proposal. For instance, European People's Party member Markus Ferber opined that this almost equated to a complete ban on private crypto wallets.

EU Voted in Favour of Tracking Private Crypto Wallets

Over 90 European lawmakers voted in favor of outlawing ‘unhosted wallets’ within the European Union.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

EU Voted in Favour of Tracking Private Crypto Wallets

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