The new draft of EU anti-money laundering regulations will prohibit private wallets and currency mixers, and will not prohibit self-managed wallets

It is reported that according to the latest draft of the EU anti-money laundering regulations it has obtained, the current version of the draft may prohibit the use of encrypted assets and anonymous tools that enhance privacy, including private wallets or cryptocurrency mixers, but these restrictive provisions do not apply to self-managed wallets. In terms of transaction restriction rules, the latest version of the European Parliament’s review of the Anti-money Laundering Act led to the document changing the self-hosted wallet to the self-hosted address.

Interpretation of this information:

The European Union is said to be considering a new set of regulations aimed at preventing money laundering. However, according to the latest draft obtained, the regulations may restrict the use of encrypted assets and anonymous tools that enhance privacy, such as private wallets or cryptocurrency mixers. It is worth noting that these restrictive provisions will not apply to self-managed wallets. The latest version of the European Parliament’s Anti-money Laundering Act has also substituted the term self-hosted wallet for self-hosted address.

The proposed new regulations aim to prevent money laundering by curbing the use of anonymous tools that shield the true identity of users. The EU has been making efforts over the years to clamp down on money laundering activities in the region. The latest regulations, if enacted, will be a major step in the ongoing fight against financial crimes such as fraud and terrorism financing.

However, the particular provision in the draft that restricts the use of encrypted assets and anonymous tools has sparked concerns in the crypto community. According to critics, it is a step too far, and could undermine the perceived anonymity, privacy, and security that cryptocurrencies offer. Some critics also argue that the restrictions will only affect law-abiding citizens who use private wallets for legitimate activities such as protecting their assets and privacy.

The distinction between self-managed wallets and private wallets is also important. Self-managed wallets refer to wallets that are managed by the user, while private wallets are managed by third parties. The latest draft appears to suggest that the restrictive provisions will only apply to the latter, meaning self-managed wallets will remain unaffected.

In summary, the EU is considering new regulations to combat money laundering. However, the latest draft obtained suggests that the regulations may restrict the use of encrypted assets and anonymous tools that enhance privacy, albeit exempting self-managed wallets. The latest version of the Anti-Money Laundering Act has also substituted the term self-hosted wallet for self-hosted address.