Self-hosted wallets ban off the table for now

A ban on self-hosted cryptocurrencies has been eased in the latest draft of the EU's upcoming anti-money laundering bill (TFR).

A ban on self-hosted cryptocurrencies has been eased in the latest version of the EU's coming anti-money laundering bill (TFR).

According to reports is a ban on self-hosted wallets not included in the latest version of the Transfer of Funds Regulation (TFR). The EU regulation is meant to set guidelines to prevent money laundering and the financing of terrorism in the crypto community. The previous version could have allowed banning crypto users from storing their own coins and tokens in wallets. This sparked outrage, especially in the DeFi community.

Transaction limit for unidentified wallets

The new version indicates that it does not want to ban self-storage services outright. Instead, wallet owner identification is central to the guidelines. Wallets whose owners are not identified would therefore face a transaction limit of €1,000. Providers would then need to implement robust procedures for collecting and verifying transaction data and share them with the appropriate authorities. Also the treatment of privacy blockchains or token-mixing services needs clarification. These services remain banned in the EU.

The latest version of the TFR can now be discussed in Parliament before it votes on March 28. During further negotiations among the institutions, the European Parliament, and the European Commission, more changes are possible.

Read also: How Europe can benefit from strict crypto regulation in the US