European Union (EU) lawmakers will vote on Tuesday on a new set of crypto rules that could ban large crypto transfers from self-hosted wallets.
The new regulations are part of a renewed focus on crypto in the European Union and its potential use for money laundering. EU lawmakers will decide, among other things, whether anonymous crypto transactions above €1,000 ($1,080) should be banned outright, unless a regulated service provider is involved.
The proposal, in other words, would prohibit all transfers of more than €1,000 from one non-custodial wallet to another. Such transactions represent a large portion of the crypto economy today, and non-custodial wallets are often advocated by crypto proponents for the security and control it provides to individual users.
Custodial wallets, on the other hand, take away the control from individuals. Recent history is replete with examples of users who have lost their funds due to trusting crypto service providers.
The vote will take place in the European Parliament’s Economics and Civil Liberties committees. The proposal would need the approval of both the European Parliament and the European Council before it could become law.
In addition to new restrictions on crypto transactions, the proposed law also imposes new restrictions on cash transactions. For example, the proposal is said to ban businesses from accepting cash payments of more than €7,000.
EU lawmakers are known to take a tough stance on crypto, and have proposed legislation to do better in the past Monitor Decentralized Finance (DeFi) activity, The European Union has also recently implemented MiCA.Which serves as a strict regulatory framework for the entire crypto and stablecoin sector in Europe.
