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EU’s Final Verdict on Unhosted Wallets Like MetaMask

According to Patrick Hansen (head of growth and strategy, Unstoppable Finance), the European Parliament is set to vote to add unhosted wallets such as Metamask or Ledger to the Anti-money Laundering (AML) package under the Transfer of Funds Regulation. Hansen also suggests that the European Commission may end up completely banning transactions to private wallets. Existing Financial Action Task Force (FATF), travel rule requires that businesses verify transactions exceeding 1,000 euros ($1,098). The draft does not include any lower limit. This means that all transactions exceeding 1,000 euros ($1,098) must be verified by businesses.

Ernest Urtasun (a Spanish ecosocialist politician) and Assita Kanko (a Belgian journalist, human right activist, who represent the New Flemish Alliance), are leading the effort to de-anonymize cryptocurrency transactions.

On March 29, the Economic Affairs Committee will vote to de-anonymize all cryptocurrency transactions that are not hosted on self-hosted wallets. The proposal will be considered by the “trilogue” if it passes. This is despite the fact that the European cryptocurrency community managed to avoid a de facto Bitcoin ban. After strong opposition from the cryptocurrency community, a last-minute amendment to limit the use of proofs-of-work was not able to gain enough votes.

In order to make it easier for law enforcement to trace illegal transactions, the European Commission proposed banning anonymous cryptocurrency wallets.

The vast majority of cryptocurrency companies won’t send crypto to self-hosted wallets if the latest draft is approved.

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