- The EU has approved amendments to be made to the Transfer of Funds Regulation for Non Hosted Crypto Wallets.
- A large number of setbacks are anticipated due to this approval.
On 31st March, The ECON & LIBE committees of the European Parliament passed their vote in favor of making amendments to the Transfer of Funds Regulation (TFR). The bill would require the digital currency providers to verify the identity of the holders of non-hosted crypto wallets. The Block reported that the bill received 58 votes in favor and 52 against, with 7 abstains.
However, the reaction to the bill was not as anticipated. Unstoppable Finance, a multi-chain DeFi wallet, has shared on its Twitter handle that the amendments are a “huge setback” for the future of Cryptocurrency. The initial proposal included only collecting personal data of the owners of the wallets. But now, it states, “verify the accuracy of the information concerning the originator or beneficiary behind the unhosted wallet.”
However, there is one loophole. The draft does not include how the details will be verified, which will be the primary concern of crypto firms. They might even stop transactions with these wallets. There is a possibility of imposing restrictions as well, which will pose another problem for the firms.
Violation of privacy is also anticipated as it will be mandatory for the companies to inform the “competent AML authorities” even if the transaction is clean. Satoshi transactions will be subject to risks as they will have to include personal information.
Patrick Hansen, the Head of Strategy & Business Development at Unstoppable Finance, has shared on Twitter, “This is totally unjustifiable double standard.”, and that the final draft of the regulation is expected today.