Explanation of anonymous transactions in Europe

[zasad@]

PROVISIONAL AGREEMENT RESULTING FROM INTERINSTITUTIONAL NEGOTIATIONS
https://www.europarl.europa.eu/meetdocs/2014_2019/plmrep/COMMITTEES/CJ12/AG/2024/03-19/1297044EN.pdf

✔️ AMLR (AML Rules) is not crypto regulation, but an extended AML/CFT system for institutions with the status of "obliged entities" (OEs).

✔️ All financial institutions, including CSPS (crypto asset service providers), are such.

✔️ Non-financial organizations such as football clubs or gambling services are subject to this most extended system (AMLR).

❗️AMLR does not apply to providers of hardware and software for self-storage of cryptocurrency (for example, Ledger or Metamask, etc.).

✔️ AMLR will apply to all CASPs (exchanges, brokers, etc.) that are regulated by MiCA. In these cases, standard KYC/AML procedures will need to be followed.

CASP - Crypto-Asset Service Provider.
(a striking example is a crypto exchange)

✔️This is nothing new as all crypto exchanges and custodial wallet providers in the EU are already subject to these obligations under the current AMLD5.

✔️ AMLR (Art. 58) - “custodial crypto business cannot provide services to anonymous users.” This is already prohibited in Europe...

✔️  CASP also does not provide services to anonymous users and does not work with “privacy coins” - an already existing business practice around the world. Nothing new. (https://t.me/crypto_hd)

✔️  MiCA already prohibits the listing of crypto assets with a built-in anonymization function. (https://t.me/crypto_hd) (anonymization function)

✔️  AMLR, art. 31b - the rule requires "risk mitigation measures" when it comes to transactions between a CASP (exchange) and a non-custodial wallet - the origin and purpose of these assets.

✔️ Existing crypto regulation (FATF, TFR) already requires crypto exchanges (CASPs) to at least collect data on transfers to/from self-custody wallets. (Ledger, Metamask, etc.).

✔️  AMLR Art. 59 - Cash payments are indeed limited to €10,000. Lower limits may also be introduced in the EU.

✔️  The limit of 1000 € is NOT ACCEPTED when it comes to transferring, say, from Ledger to a crypto exchange.

✔️  You can use your wallets to purchase goods/services in the EU without any restrictions.

✔️  If you want to transfer, say, #USDC for 1000 € to a crypto exchange, then the company will have to verify your identity (KYC/AML), according to AMLR Art. 15.

crypto_hd(C) (https://t.me/crypto_hd)

In detail, Patrick Hansen breaks down all the highlights in his tweet

https://twitter.com/paddi_hansen/status/1771929862602637788
"Yesterday was a prime example of why crypto Twitter (and often crypto media) should not be trusted when it comes to crypto policy. Let's debunk claims that the EU is banning anonymous crypto transactions or self-custodial wallets.
Here is what’s actually in the EU Anti Money Laundering Regulation (AMLR) and what in means for crypto in the EU 🧵"

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[yhiaali3]

What surprised me was that:

But also non-financial institutions like football clubs or gambling services that might be prone to AML/CFT risk will be treated as OEs under the AMLR.

This is understandable regarding gambling services, but I am surprised that football clubs are also included!!!

While I liked this:

❗️AMLR does not apply to providers of hardware and software for self-storage of cryptocurrency (for example, Ledger or Metamask, etc.).

I find this rather positive

In any case, I expect that the agreement did not bring anything new. All of these regulations had previously existed in one form or another.

[Poker Player]

But I think LoyceV already posted that in another thread, didn't he?

I can't take a site filled with ads and links to their own site seriously. When I search for this, all I find is dozens of other crypto related sites posting the same "news".
Here's an opposing article: Let's Debunk Claims That the EU is Banning Anonymous Crypto Transactions or Self-Custodial Wallets. After skimming through, I'm not worried.

Although it's not bad to talk in a separate thread about it. So I understand that under 1.000€ you could transact without identifying yourself with a company in the EU, and P2P I imagine that there are no limits (apart from the fact that they would be very difficult to enforce).

[zasad@]

This topic needs to be examined more thoroughly, because the document contains a lot of pages. In a couple of years, AML Rules will work almost always when payments are made from an unknown wallet to a custodial wallet and vice versa.
And a limit of less than 1000 euros does not guarantee that there will be no checks.

[blckhawk]

What surprised me was that:

But also non-financial institutions like football clubs or gambling services that might be prone to AML/CFT risk will be treated as OEs under the AMLR.

This is understandable regarding gambling services, but I am surprised that football clubs are also included!!!

The reason that I believe that football clubs are included is because they're technically a business too which means that they're going to be reporting some taxes and as an organization that's got a lot of fans, there's a potential that money laundering syndicates might use those clubs as a front for their operation, I mean that's what most money launderers look for to make sure that they can clean their dirty money, they want to legitimate businesses mixing the dirty money with the good money.

[zasad@]

https://www.dlnews.com/articles/regulation/eu-parliament-passes-anti-money-laundering-bill/
EU will ban mixers and force crypto firms to surveil users in blow to DeFi anonymity
"The Anti-Money Laundering Regulation passed a final vote in the European Parliament.
The bill compels crypto firms to collect more data on users.
Tools providing anonymity services will be banned under the bill."

[Husires]

https://www.dlnews.com/articles/regulation/eu-parliament-passes-anti-money-laundering-bill/
EU will ban mixers and force crypto firms to surveil users in blow to DeFi anonymity

If DeFi services force users to undergo identity verification procedures, how will they continue to be DeFi?
Does this include any exchange service that does not ask depositors for data for transactions less than $10,000, or for all transactions, and does this include Monero ban?

[zasad@]

https://www.dlnews.com/articles/regulation/eu-parliament-passes-anti-money-laundering-bill/
EU will ban mixers and force crypto firms to surveil users in blow to DeFi anonymity

If DeFi services force users to undergo identity verification procedures, how will they continue to be DeFi?
Does this include any exchange service that does not ask depositors for data for transactions less than $10,000, or for all transactions, and does this include Monero ban?

Most DeFi is no longer DeFi because there is a token lockup and a kill switch.
In a couple of years, there will be no well-known services without a KYC procedure. But you can prepare for this by distributing the coins into smaller wallets now, so that there is no connection between these wallets.