{"id":424719,"date":"2022-04-01T05:39:44","date_gmt":"2022-04-01T02:39:44","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/crypto-industry-fires-back-after-eu-vote-to-block-unhosted-wallets\/"},"modified":"2022-04-01T05:39:44","modified_gmt":"2022-04-01T02:39:44","slug":"crypto-industry-fires-back-after-eu-vote-to-block-unhosted-wallets","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/crypto-industry-fires-back-after-eu-vote-to-block-unhosted-wallets\/","title":{"rendered":"# Crypto industry fires back after EU vote to block \u2018unhosted\u2019 wallets"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a28c0ce7367d\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a28c0ce7367d\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/crypto-industry-fires-back-after-eu-vote-to-block-unhosted-wallets\/#%E2%80%9D_Crypto_industry_fires_back_after_EU_vote_to_block_%E2%80%98unhosted_wallets_%E2%80%9C\" >&#8221; Crypto industry fires back after EU vote to block \u2018unhosted\u2019 wallets &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Crypto_industry_fires_back_after_EU_vote_to_block_%E2%80%98unhosted_wallets_%E2%80%9C\"><\/span>&#8221; Crypto industry fires back after EU vote to block \u2018unhosted\u2019 wallets &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvNTJhZDFiODUtMDBiMi00NjJiLWFjZjUtNjkzNTMzMTBjZTM3LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>The crypto industry has reacted strongly against a EU Parliament committee voting in favor of a regulatory package for tighter know-your-customer (KYC) and anti-money laundering (AML) rules for \u201dunhosted\u201d private wallets. <\/p>\n<p>The new guidelines would require crypto service providers \u2014 most commonly exchanges \u2014 to verify the identity of every individual behind an unhosted wallet that interacts with them, while any transaction greater than 1,000 Euros ($1,100) would need to be reported to authorities. <\/p>\n<p>Coinbase CEO Brian Armstrong vented his frustrations against the move via <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a>, as he drew comparisons with fiat to highlight the absurdity of reporting and verifying a 1,000 Euro transaction: <\/p>\n<blockquote><p>\u201cImagine if the EU required your bank to report you to the authorities every time you paid your rent merely because the transaction was over 1,000 euros. Or if you sent money to your cousin to help with groceries, the EU required your bank to collect and verify private information about your cousin before allowing you to send the funds.\u201d<\/p><\/blockquote>\n<p>\u201cHow could the bank even comply? The banks would push back. That\u2019s what we are doing now,\u201d he added<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">8\/ This eviscerates all of the EU\u2019s work to be a global leader in privacy law and policy. It also disproportionately punishes crypto holders and erodes their individual rights in deeply concerning ways. It&#8217;s bad policy. Act now here: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/b3Ll3xXiW4\">https:\/\/t.co\/b3Ll3xXiW4<\/a><\/p>\n<p>\u2014 Brian Armstrong &#8211; barmstrong.eth (@brian_armstrong) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/brian_armstrong\/status\/1509203396305117186?ref_src=twsrc%5Etfw\">March 30, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The proposal was part of an <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.europarl.europa.eu\/doceo\/document\/CJ12-PR-704888_EN.pdf\">amendment<\/a> to the Transfer of Funds Regulation that was voted through by the Economic and Monetary Affairs (ECON) and Committee on Civil Liberties, Justice and Home Affairs (LIBE) on March 31. <\/p>\n<p>For the new rules to be enacted, they must be passed via trialogue negotiations between the EU Parliament, European Council and the European Commission, and if they remain unopposed, it would give the crypto industry nine to 18 months to come in full compliance with the legislation. <\/p>\n<p>The chairman and CEO Pascal Gaunthier of digital wallet firm Ledger didn\u2019t mince his words either, stating that the \u201cEU Parliament chose fear over freedom\u201d: <\/p>\n<blockquote><p>\u201cA new regulation was just voted on that paves the way for a massive surveillance regime over Europe&#8217;s financial landscape.\u201d<\/p><\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today, the  EU Parliament chose fear over freedom. <\/p>\n<p>A new regulation was just voted on that paves the way for a massive surveillance regime over Europe&#8217;s financial landscape. <\/p>\n<p> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/thread?src=hash&amp;ref_src=twsrc%5Etfw\">#thread<\/a> to understand what lies before us. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#Crypto<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/blockchain?src=hash&amp;ref_src=twsrc%5Etfw\">#blockchain<\/a><\/p>\n<p>\u2014 Pascal Gauthier (@_pgauthier) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/_pgauthier\/status\/1509624947559202816?ref_src=twsrc%5Etfw\">March 31, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The regulatory <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to have had a significant <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coingecko.com\/\">impact<\/a> on the price of Bitcoin (BTC), with the asset\u2019s price declining 4.5% over the past 24 hours to sit at $45,243 at the time of writing. Ether (ETH) is also down 3.7% to $3,282 within that time frame. <\/p>\n<p>European decentralized finance (DeFi) firm Unstoppable Finance lamented the news, expressing <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/UnstoppableDeFi\/status\/1509539547868192768\">hopes<\/a> that proposals will get shot down in the upcoming negotiations. <\/p>\n<p>\u201cThe amendments are a huge setback for crypto in the EU &amp; should be repealed in the trilogues,\u201d the firm stated. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Today, the EU Parliament voted in favor of measures that raise significant concerns for both individuals and the crypto ecosystem. If ultimately approved, these new measures will create fundamental issues for privacy, innovation, and access. <\/p>\n<p>Full statement below. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/kjaeWxftz5\">pic.twitter.com\/kjaeWxftz5<\/a><\/p>\n<p>\u2014 Crypto Council for Innovation (@crypto_council) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/crypto_council\/status\/1509655139652710405?ref_src=twsrc%5Etfw\">March 31, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>European \u2018MiCA\u2019 regulation on digital assets: Where do we stand?<\/em><\/strong><\/p>\n<p>Unstoppable Finance\u2019s head of strategy and business development Patrick Hansen also took to Twitter to vent his anger, calling the proposals a \u201cbig disappointment and a big threat to individual privacy.\u201d<\/p>\n<blockquote><p>\u201cIt introduces unfeasible wallet verification requirements and unjustifiable reporting requirements for crypto companies that would have massively detrimental effects for EU citizens and companies alike.\u201d<\/p><\/blockquote>\n<p>He noted it would be difficult, if not impossible, for crypto service providers to verify an \u201cunhosted\u201d counterpart and warned that to stay compliant and not compromise their legal position, some companies might want to cut off transactions with unhosted wallets altogether. Others, smaller ones, might find the potential operational costs of compliance too expensive, leaving it to the bigger established players, which would cause a further market consolidation<\/p>\n<p>However, Hansen also<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/paddi_hansen\/status\/1509579219654819850\"> noted<\/a> that he holds optimism that the rules could be at least watered down in the trialogue negotiations, as \u201csome Commission\/Council members have voiced criticism\u201d about the regulations. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Last update on the vote for today: The final committee votes on the entire draft and the mandate to enter trilogue negotiations are in and the results are as clear as expected.<\/p>\n<p>Added these updates to the earlier thread on the vote. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/7NT6PxdDSB\">https:\/\/t.co\/7NT6PxdDSB<\/a><\/p>\n<p>\u2014 Patrick Hansen (@paddi_hansen) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/paddi_hansen\/status\/1509589862630019076?ref_src=twsrc%5Etfw\">March 31, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/crypto-industry-pushes-back-after-eu-vote-to-block-unhosted-wallets\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Crypto industry fires back after EU vote to block \u2018unhosted\u2019 wallets &#8220; The crypto industry has reacted strongly against a EU Parliament committee voting in favor of a regulatory package for tighter know-your-customer (KYC) and anti-money laundering (AML) rules for \u201dunhosted\u201d private wallets. The new guidelines would require crypto service providers \u2014 most commonly&#8230;<\/p>\n","protected":false},"author":1,"featured_media":424720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDMvNTJhZDFiODUtMDBiMi00NjJiLWFjZjUtNjkzNTMzMTBjZTM3LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,74956,75190,75189,74879,28340,72705,70934],"class_list":["post-424719","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-coinbase","tag-hardware-wallet","tag-ledger","tag-wallet","tag-europe","tag-european-union","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/424719","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=424719"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/424719\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/424720"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=424719"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=424719"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=424719"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}