{"id":426445,"date":"2022-04-04T19:48:00","date_gmt":"2022-04-04T16:48:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4\/"},"modified":"2022-04-04T19:48:00","modified_gmt":"2022-04-04T16:48:00","slug":"law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4\/","title":{"rendered":"# Law Decoded: \u2018Unhosted\u2019 wallets are just \u2018wallets,\u2019 March 28\u2013April 4"},"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-6a2d2adb42ce1\" 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-6a2d2adb42ce1\" 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\/law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4\/#%E2%80%9D_Law_Decoded_%E2%80%98Unhosted_wallets_are_just_%E2%80%98wallets_March_28%E2%80%93April_4_%E2%80%9C\" >&#8221; Law Decoded: \u2018Unhosted\u2019 wallets are just \u2018wallets,\u2019 March 28\u2013April 4 &#8220;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4\/#Self-hosted_doesnt_mean_%E2%80%9Cunhosted%E2%80%9D\" >Self-hosted doesn\u2019t mean \u201cunhosted\u201d<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4\/#A_digital_dollar_without_surveillance\" >A digital dollar without surveillance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4\/#All_quiet_on_the_BTC_ETF_front\" >All quiet on the BTC ETF front<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Law_Decoded_%E2%80%98Unhosted_wallets_are_just_%E2%80%98wallets_March_28%E2%80%93April_4_%E2%80%9C\"><\/span>&#8221; Law Decoded: \u2018Unhosted\u2019 wallets are just \u2018wallets,\u2019 March 28\u2013April 4 &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvNTc4ZWMwMjUtNzZlYy00Yjc3LTlmNjgtMjQ2OWQxYmJiNjhjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>The European Parliament continued to keep crypto users and advocates at the edge of their seats last week as yet another piece of potentially harmful legislation \u2014 this time, a set of demanding data disclosure requirements for digital asset service providers \u2014 was rushed to a vote mere days after a near miss on banning proof-of-work-based cryptocurrencies.\u00a0<\/p>\n<p>Unlike the relatively h<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>y resolution of the Markets in Crypto Assets framework situation, the EU\u2019s new Anti-Money Laundering rules retained all the crypto-hostile language as they are going into the next round of consideration, the so-called trialogue negotiations. If the rules are enacted as they are, compliant crypto exchanges could be forced to halt transactions involving \u201cunhosted\u201d or self-custodied crypto wallets.<\/p>\n<p>The tax reporting deadline is nearing across the Atlantic, and the Biden administration has revealed its plan to reduce the budget deficit by almost $5 billion by streamlining the reporting rules and collection of digital asset taxes in the upcoming fiscal year. <\/p>\n<p>On the monetary policy front, the White House seems to have secured the passage of its four Federal Reserve nominees to the full Senate vote. Something that would be considered a formality back in the day, the Fed nomination process has become yet another partisan battlefield amid the increasing politicization of monetary policy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Self-hosted_doesnt_mean_%E2%80%9Cunhosted%E2%80%9D\"><\/span>Self-hosted doesn\u2019t mean \u201cunhosted\u201d<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The origins of regulators\u2019 habit of framing a crypto wallet that is not custodied on a centralized platform as \u201cunhosted\u201d \u2014 a term that already conveys a certain air of neglect \u2014 can be traced back to at least December 2020, when the United States Treasury first attempted to impose financial monitoring requirements on crypto exchanges that facilitate transactions to such wallets. Using this language creates an impression that the only acceptable format of a \u201clawful\u201d crypto wallet is being \u201chosted\u201d by some centralized third party \u2014 an idea that is absurd for most people in the crypto space.<\/p>\n<p>Armed with this rhetorical weapon and with the spirit of the Financial Action Task Force\u2019s \u201c<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/trip-and-travel\/\" data-internallinksmanager029f6b8e52c=\"10\" title=\"Trip &amp; Travel\" target=\"_blank\" rel=\"noopener\">Travel<\/a> Rule,\u201d the EU lawmakers went above and beyond what the international group\u2019s guidance holds. While the FATF recommends that the reporting of transacting parties\u2019 personal data be triggered by transactions between exchanges and personal wallets worth more than $1,000, the proposed EU rules extend this to any such transactions, regardless of their value. Additionally, users sending funds from a wallet to an exchange would be required to report to the platform the identity of the \u201cunhosted\u201d wallet\u2019s beneficial owner, and exchanges would have to verify this information. Clearly, such requirements will put a heavy burden on compliant virtual asset service providers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"A_digital_dollar_without_surveillance\"><\/span>A digital dollar without surveillance?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Stephen Lynch, a member of the U.S. House of Representatives from Massachusetts, has introduced a legislative initiative proposing a form of digital cash that seeks to maximize consumer protection and data privacy. The proposal is apparently designed to address privacy and financial surveillance concerns around a potential U.S. central bank digital currency (CBDC) that several members of Congress have expressed in the past few months. For one, the prospective e-cash would not even formally qualify as a central bank currency, since the Treasury would be tasked with developing the pilot. At the same time, the bill explicitly states that the proposed Treasury money is not supposed to preclude or replace a prospective Federal Reserve-issued CBDC. Meanwhile, the movement to block the Fed\u2019s ability to issue a retail-focused digital currency has gotten a second wind this week, with U.S. Senator Ted Cruz sponsoring a companion bill to Representative Tom Emmer\u2019s earlier legislation aiming at just that.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"All_quiet_on_the_BTC_ETF_front\"><\/span>All quiet on the BTC ETF front<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Another spot Bitcoin exchange-traded fund application bites the dust: This week, the U.S. Securities and Exchange Commission has turned down the proposed rule change to allow ARK 21Shares Bitcoin ETF to trade on the Chicago Board Options Exchange. The justification cited the familiar mantra that the proposed product failed to meet the requirements of the Exchange Act in that it lacked \u201ca comprehensive surveillance-sharing agreement with a regulated market of significant size\u201d related to the underlying asset. Another contender for the distinction of sponsoring the first regulated spot Bitcoin ETF in the United States, Grayscale, is apparently preparing for a legal battle in case the regulator turns down its bid. The deadline for the SEC to render a decision on Grayscale\u2019s product is July 7 of this year.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/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 <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> 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\/law-decoded-unhosted-wallets-are-just-wallets-march-28-april-4\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Law Decoded: \u2018Unhosted\u2019 wallets are just \u2018wallets,\u2019 March 28\u2013April 4 &#8220; The European Parliament continued to keep crypto users and advocates at the edge of their seats last week as yet another piece of potentially harmful legislation \u2014 this time, a set of demanding data disclosure requirements for digital asset service providers \u2014 was&#8230;<\/p>\n","protected":false},"author":1,"featured_media":426446,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvNTc4ZWMwMjUtNzZlYy00Yjc3LTlmNjgtMjQ2OWQxYmJiNjhjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74858,75046,74863,75604,74898,74879,52214,28340,72705,55229,70934,8575],"class_list":["post-426445","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin-regulation","tag-cbdc","tag-cryptocurrencies","tag-euro","tag-sec","tag-wallet","tag-congress","tag-europe","tag-european-union","tag-law","tag-regulation","tag-usa"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426445","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=426445"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/426445\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/426446"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=426445"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=426445"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=426445"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}