{"id":227865,"date":"2022-03-28T10:10:31","date_gmt":"2022-03-28T09:10:31","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=227865"},"modified":"2022-03-28T19:37:35","modified_gmt":"2022-03-28T18:37:35","slug":"upcoming-eu-vote-could-leave-self-hosted-crypto-wallet-users-high-and-dry","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/upcoming-eu-vote-could-leave-self-hosted-crypto-wallet-users-high-and-dry\/","title":{"rendered":"Upcoming E.U. vote could leave self-hosted crypto wallet users high and dry"},"content":{"rendered":"

Head of Strategy & Business Development at Unstoppable Finance Patrick Hansen<\/a> warns that unhosted crypto wallet users are at risk in the EU.<\/p>\n

In a recent tweet, Hansen said the EU Commission had proposed a revision of the existing Transfer of Funds Regulation act. This would require financial institutions, including crypto exchanges, to provide information on fund transfers.<\/span><\/p>\n

Having gone through the draft, Hansen points out several red flags.<\/p>\n

EU is not done with crypto users yet<\/h2>\n

Last week, the EU crypto industry breathed a sigh of relief as a proposed Proof-of-Work mining ban<\/a> under the Markets in Crypto Assets (MiCA) bill didn't go through. However, it seems as though EU lawmakers aren't done just yet.<\/p>\n

This Thursday<\/a>, the EU Parliament's Committee on Economic and Monetary Affairs will vote on draft proposals to do with AML regulation. This includes a change to the Transfer of Funds Regulation (TFR) that will extend the obligation of financial institutions to provide accompanying data on the payer and payee each time crypto funds greater than \u20ac1,000 are transferred<\/span>.<\/span><\/p>\n

The draft report<\/a> states this is necessary to effectively address the risks of crypto as they pertain to money laundering and terrorist financing. It adds that the changes would advance a uniform global standard in countering the problem.<\/p>\n

Previous proposals called for collection but not verification of personal data to\/from unhosted wallets. Hansen<\/a> says the current draft proposal now calls for verification of that data. However, it doesn't stipulate how to verify unhosted wallets, which he believes may result in exchanges halting transfers to unhosted wallets to stay within the law.<\/p>\n

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7\/ But it doesn\u2019t say how exactly a crypto service provider should be able to verify the unhosted counterpart\ud83e\udd28<\/p>\n

The consequence of this, imo, is that most crypto companies won\u2019t be able or willing to transact with unhosted wallets anymore in order to stay compliant.<\/p>\n

— Patrick Hansen (@paddi_hansen) March 26, 2022<\/a><\/p><\/blockquote>\n