Will EU ban Bitcoin?

[kotajikikox]

While bitcoin and cryptocurrency is legal to use in EU, the union may be moving towards something more strict and restrictive. There have been plenty news concerning EU's bans. Recently, it has been reported that they are planning on implementing anti money laundering rules which includes the banning of anonymous cryptocurrency accounts. They will also not be allowing privacy preserving cryptocurrencies like Monero. Article 79 of the AMLR establishes strict prohibitions on anonymous accounts [...]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts, All of this will be implemented in 2026. Basically saying that they will only allow centralized crypto platforms and even then, they would have to go through very strict registration process. They implemented MiCA (Markets in Crypto Assets) as a framework to oversee regulatory decisions over crypto back in 2023. Under this framework it says, crypto-asset service providers need an authorisation to operate in the EU. They have to respect strong requirements to protect consumers’ wallets and will be held liable if they lose investors’ crypto-assets.

Now I am seeing speculation of whether will EU ban bitcoin or not? The EDPB ruled that a public key is personal data if it can identify, even indirectly, a natural person. This definition subjects every Bitcoin address to data protection obligations. In practice, every transaction is constrained by European law.EU might not explicitly ban bitcoin but they might be dropping incredibly strict rules on top of it making the use of crypto in their region a whole lot unattractive.

If they indeed continue to be restrictive when it comes to crypto, what do you think could be the consequences especially when a lot of other countries are openly embracing bitcoin? Do you think that EU is doing the right thing or will they just go back on their words after seeing other countries get ahead with bitcoin?

[betswift]

Some countries want more control than the potential that BTC provides - and that would be their choice, clearly.

I don't think that all countries would vote for such harsh regulations for BTC and crypto alike, so it may be a looong process to see it working out at all anytime soon, and then again - many would find loopholes and so on.

[mocacinno]

In my personal opinion, as a person living in West Europe the EU never liked crypto... They're always trying to make the rules more strict, force more KYC/AML, restrict us whenever they can.  Will they back down? My gut feeling says they won't. They don't like what they cannot controll.

But then again, i don't have a crystal ball to predict the future, i could be completely wrong.

[hero_the_bossman]

In my personal opinion, as a person living in West Europe the EU never liked crypto... They're always trying to make the rules more strict, force more KYC/AML, restrict us whenever they can.  Will they back down? My gut feeling says they won't. They don't like what they cannot controll.

But then again, i don't have a crystal ball to predict the future, i could be completely wrong.

That's right, and I think we should stay optimistic about the matter.

Because, clearly, by the time they would implement such regulations, there may be ways found to avoid problems entirely

[Spaceman1000$]

How do they intend to ban anonymous crypto account especially for a private holder, a private crypto Holder is probably using decentralized wallet, you can barely even Identify who the owner is or neither can you have access the content of the wallet. My bitcoin asset is my private property and i will not go out to start telling anybody about my assets, so not to start attracting government agencies. The decentralized nature of Bitcoin has placed the EU plan inconsequential, this threat can only work for the fizzle minded. If the EU are looking what to control, they should focus on fiat, if they had this kind of focus and strict rules on fiat, I believe by now no EU funds will be misappropriated or diverted.

[john_egbert]

How do they intend to ban anonymous crypto account especially for a private holder, a private crypto Holder is probably using decentralized wallet, you can barely even Identify who the owner is or neither can you have access the content of the wallet. My bitcoin asset is my private property and i will not go out to start telling anybody about my assets, so not to start attracting government agencies. The decentralized nature of Bitcoin has placed the EU plan inconsequential, this threat can only work for the fizzle minded. If the EU are looking what to control, they should focus on fiat, if they had this kind of focus and strict rules on fiat, I believe by now no EU funds will be misappropriated or diverted.

As always, the focus is on the things that are new and brand to everybody - fiat is tested with time in their opinion and it is already good where it stands, and more trackable, whereas crypto is this brand new world to conquer for them.

[Zlantann]

Now I am seeing speculation of whether will EU ban bitcoin or not? The EDPB ruled that a public key is personal data if it can identify, even indirectly, a natural person. This definition subjects every Bitcoin address to data protection obligations. In practice, every transaction is constrained by European law.EU might not explicitly ban bitcoin but they might be dropping incredibly strict rules on top of it making the use of crypto in their region a whole lot unattractive.

OP, you asked if the EU will ban Bitcoin. In my view you included my position in your post. They wouldn't ban Bitcoin because it will cause more harm than good. But they will make laws that will make crypto transactions more centralized.  People will find it difficult to use crypto privately in the EU.

If they indeed continue to be restrictive when it comes to crypto, what do you think could be the consequences especially when a lot of other countries are openly embracing bitcoin? Do you think that EU is doing the right thing or will they just go back on their words after seeing other countries get ahead with bitcoin?

They will always claim that the reason why they are making this strict regulations is to curb financial crimes and terrorist financing. They are not doing the right thing because they are fighting against freedom. The number of people who use Bitcoin legitimately is greater than those who use it for criminal activities. Why punish the majority because of the sins of the minority? People who are concerned about privacy will have to seek means of bypassing the law or move out of the EU.

[katanic97]

In my personal opinion, as a person living in West Europe the EU never liked crypto... They're always trying to make the rules more strict, force more KYC/AML, restrict us whenever they can.  Will they back down? My gut feeling says they won't. They don't like what they cannot controll.

But then again, i don't have a crystal ball to predict the future, i could be completely wrong.

In general, western europe wants to take control, and that's clearly visible, just like you said. They're always looking for ways to tighten the rules and require KYC for every little move. Also, if you have a slightly larger transaction, you're immediately considered suspicious. That's how it is, and they're not wrong it's only going to get worse.But i don't think BTC will ever be banned in the EU.

[mocacinno]

How do they intend to ban anonymous crypto account especially for a private holder, a private crypto Holder is probably using decentralized wallet, you can barely even Identify who the owner is or neither can you have access the content of the wallet. My bitcoin asset is my private property and i will not go out to start telling anybody about my assets, so not to start attracting government agencies. The decentralized nature of Bitcoin has placed the EU plan inconsequential, this threat can only work for the fizzle minded. If the EU are looking what to control, they should focus on fiat, if they had this kind of focus and strict rules on fiat, I believe by now no EU funds will be misappropriated or diverted.

Sure, they can't ban crypto in itself, but they can ban about every usecase you have... Force strict KYC/AML for all vendors accepting crypto, force strict KYC/AML for each and every exchange, ban everything that has some remote link to privacy (like mixers)... They can make everything absurd if they really wanted to: "hey when we analyse the unspent output you used for a transaction to pay for this 50€ piece of hardware, and we trace 10 transactions deep, we find a transaction that might have had something to do with something illegal: your funds are now locked forever..."
Sure, you can still make a wallet, but if they strictly controll every way you spend your funds, crypto is reduced purely to p2p transactions, limiting the scope immensely.

[henry_of_skalitz]

In general, western europe wants to take control, and that's clearly visible, just like you said. They're always looking for ways to tighten the rules and require KYC for every little move. Also, if you have a slightly larger transaction, you're immediately considered suspicious. That's how it is, and they're not wrong it's only going to get worse.

What they would do with DEXes, though?

[Alpha Marine]

Things like this have always been my concern. I have never really cared much about Bitcoin government reserves. All I asked for was for people to be able to use Bitcoin in their own way without too many restrictions and not be seen as criminals. I don't know if this is too big to ask for. It doesn't matter how much they have in their reserves if the people who want to use bitcoin can't use it freely, however they want. What's the point of using Bitcoin if you can only use it through exchanges under heavy restrictions?

I don't think they will ban Bitcoin, though, but it will be heavily restricted. One reason they won't ban it is that they will also be buying Bitcoin soon.

[slaman29]

What kind of nonsense are you talking about OP seriously.

I get that we can discuss EU's view on digital assets, and there is a regulation already in place. We all know that, there are other things unknown such as what exact kinds of tax will be in future when it is transnational transactions, like me and a guy from EU, for example if I decide to gift or tip him BTC. And we established 15 years ago Bitcoin is NOT anonymous, you even wrote yourself the address already by itself identifies you.

But banning BTC? Are you just purposely acting dumb or?

[Free Market Capitalist]

Of course not but what they have done is to make legislation so restrictive that it leaves virtually no room for privacy. And the next step looks like it will be, this time, to ban the Lightning Network. Do not expect much from the EU because it is clear the drift they are taking and it does not seem that it will change.

[Dunamisx]

If they indeed continue to be restrictive when it comes to crypto, what do you think could be the consequences especially when a lot of other countries are openly embracing bitcoin? Do you think that EU is doing the right thing or will they just go back on their words after seeing other countries get ahead with bitcoin?

Once other countries are making a fair regulation towards the adoption of bitcoin, then they will have no other option than to follow the mind of thier citizens as well in making thier region a bitcoin-friendly zone with thier regulations.

Most times, i see this kind of moves as a way of government trying to make bitcoin users uncomfortable the same way they have been used to fiat, but knowing that this is a different case and approach entirely, they will be more strict on thier regulations in other for them to have thier way in.

[Taskford]

While bitcoin and cryptocurrency is legal to use in EU, the union may be moving towards something more strict and restrictive. There have been plenty news concerning EU's bans. Recently, it has been reported that they are planning on implementing anti money laundering rules which includes the banning of anonymous cryptocurrency accounts. They will also not be allowing privacy preserving cryptocurrencies like Monero. Article 79 of the AMLR establishes strict prohibitions on anonymous accounts [...]. Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts, All of this will be implemented in 2026. Basically saying that they will only allow centralized crypto platforms and even then, they would have to go through very strict registration process. They implemented MiCA (Markets in Crypto Assets) as a framework to oversee regulatory decisions over crypto back in 2023. Under this framework it says, crypto-asset service providers need an authorisation to operate in the EU. They have to respect strong requirements to protect consumers’ wallets and will be held liable if they lose investors’ crypto-assets.

Now I am seeing speculation of whether will EU ban bitcoin or not? The EDPB ruled that a public key is personal data if it can identify, even indirectly, a natural person. This definition subjects every Bitcoin address to data protection obligations. In practice, every transaction is constrained by European law.EU might not explicitly ban bitcoin but they might be dropping incredibly strict rules on top of it making the use of crypto in their region a whole lot unattractive.

If they indeed continue to be restrictive when it comes to crypto, what do you think could be the consequences especially when a lot of other countries are openly embracing bitcoin? Do you think that EU is doing the right thing or will they just go back on their words after seeing other countries get ahead with bitcoin?

No they will not, but they are just want to tighten up their regulation towards privacy coins and wallets check this article here https://www.livebitcoinnews.com/eu-plans-privacy-coin-and-anonymous-wallet-ban-by-2027/

EU will strictly impose regulation to their AML law that's why they made that actions. Somehow I understand their actions since with that they can lessen up the online fraudulent activities happening. So everything is fine especially for Bitcoin user and I think they will not get hit on this regulation done by EU government.

[katanic97]

In general, western europe wants to take control, and that's clearly visible, just like you said. They're always looking for ways to tighten the rules and require KYC for every little move. Also, if you have a slightly larger transaction, you're immediately considered suspicious. That's how it is, and they're not wrong it's only going to get worse.

What they would do with DEXes, though?

It could happen that they try to impose some restrictions by introducing mandatory KYC, and they might try to block the interface in various ways. There are many ways they could attempt to limit access. But anyone with even a basic understanding will be able to bypass it

[Synchronice]

Banning Bitcoin will be like committing a suicide. I don't think they'll ban Bitcoin because it's not like Monero and Zcash, all transactions are publicly listed on blockchain and blockchain tracking is getting more advanced, lots of businesses and countries also not only adopt Bitcoin payments but create Bitcoin reserves, so I don't see any reason why the EU will ban it. We are behind many countries in terms of tech and I think they said that they are going to fix that, so I'm expecting more welcome to Bitcoin but I'm sure they'll set regulations, i.e. more KYC control, i.e. less privacy, more control but higher adoption too.

[Charles-Tim]

If you have been following the news since 2 or 3 years who, European Union is only trying to make sure citizens have no privacy to the extent that they will lack some freedom. They want to know all their citizens crypto addresses and also know their transactions they made. But citizens can use, hold or trade cryptocurrencies. They are not moving towards ban, but moving towards lack of privacy for their citizens.

[lionheart78]

I do not think EU will ban Bitcoin.   Because centralized exchanges are able to implement KYC to their users, the term "anonymous" is now not applied to people using these exchanges for Bitcoin transactions.  Thus the restriction of EU regulation about anonymity is invalidated.  Besides, Bitcoin transactions are not fully anonymous, and through blockchain transparency, the origin of the transfers and the destination of the Bitcoin transaction can be traced and even the identity of the owner can be identified.  One example of this is the owner of a piracy website like Movie2k.to Case. You can see how the story uncovers here:

Authorities Seized 50,000 BTC From Former Operator of Piracy Website

Do you think that EU is doing the right thing or will they just go back on their words after seeing other countries get ahead with bitcoin?

Whether EU is doing the right thing is dependent on one's perspective.  As a crypto believer, I would say they are not doing it right because my principles and ideas are very different from those who frown on cryptocurrency.  But if they trully banned Bitcoin, I can only say that they are missing out.

[Z-tight]

We have been discussing about the EU and crypto for sometime now, and what i noticed is that their anti-crypto policies have been progressive, ordinarily you would expect that it will end with a ban on BTC and crypto, but i don't think it will get to that.

However, they are making it extremely difficult for people who care about their privacy to use BTC, it is like they are saying: 'we won't ban crypto, but we want to know everything about your coins', it is crazy, but that is the point they are in now. It is surprising that the EU do not want to change their position about crypto, considering how countries in many other regions are becoming open to the network.