EU Parliament: €1,000 limit for self-hosted wallets off the table?
As international laws are drafted, politicians and the crypto industry clash over how to shape potential payment restrictions for self-hosted wallets.
As international laws are drafted, policymakers and the crypto industry are grappling with how to shape potential payment limits for self-hosted wallets.
On March 28, the European Parliament will vote on a text amendment to the anti-money-laundering law (TFR). In the run-up to the vote, MEPs introduced a clause in the bill that sparked buzz in the crypto sector. It aimed to set a cap on commercial transactions on crypto wallets where owners aren't fully identified. The cap was set at €1,000. Only crypto service providers with an EU license would be able to process payments above this limit. The sector fears this addition clashes with already completed bills (notably the MiCA Regulation) and would curb innovation in the decentralized finance space.
MEPS push back
With industry pushback now accounted for, according to The Block, lawmakers have decided to revert to the original wording of the bill's commercial payments provisions. In the latest draft, the cap for such transactions is €7,000. The draft provides exemptions for payments between individuals ('peer-to-peer payments').
Returning to the original language means there's still a transaction ceiling for self-hosted addresses. "Unless the customer or the ultimate beneficiary of such self-hosted addresses can be identified," the draft says, according to The Block.
The secretary-general of the Blockchain For Europe lobby group, Robert Kopitsch, told the news portal: "The reality is that, unless the EU wants to exempt all traders from MiCA, payments for goods and services via a self-hosted wallet are already adequately addressed in the TFR."
Final decision not yet made
The joint committee voted on the contents of the law on Tuesday. It can still be amended, as it still has to go through the trilogue in the lawmaking process. During this process, the European Parliament, the European Council, and the European Commission will provide their input. Only then can the law be finalized.
Additionally, MEPs gave the European Commission a mandate to assess in three years whether the rule on commercial payments should be adjusted. Both MiCA (Markets in Crypto Assets) and the TFR Regulation are set for final votes on April 19.
