Systematic monitoring of self-hosted wallets affected in the UK
It has not escaped anyone, a regulatory wind is blowing on cryptocurrencies in Europe, and the recent fall in prices is not helping matters. Since March, a proposal from the Economic and Monetary Affairs Committee (ECON) of the European Parliament has been discussed.
This plans to monitor all transactions in cryptocurrencies, including those that pass by “self-hosted” wallets, i.e. physical wallets such as Ledgers, or all those whose users hold the keys. We note that in other large economies, such as the United States or Switzerland, this systematic monitoring has been rejected. Europe is therefore distinguished by this very strict positioning.
The United Kingdom is of course no longer part of the European Union, but the measure has also been mentioned, within the framework of FATF recommendations. And the British Treasury seemed so far in favor of its implementation, explaining last July:
“Crypto-asset firms must implement systems that ensure that personal information of crypto-asset originators or recipients is masked and received during transfer.»
👉 More info on European regulations:
One finally rejected
We will not return to the fact that this measure would be very difficult technically, in addition to posing some obvious ethical problems. But it poses major problems for the industry, which could find itself suffocated by this unprecedented regulatory framework.
For its part, the UK seems – for now – to have decided that the systematic monitoring of self-hosted wallets was not necessary. In a press release published this week, the Treasury explains as follows:
“Rather than requiring the collection of beneficiary and originator information for all self-hosted wallets, crypto-asset companies will only need to collect this information for transactions. present as presenting a high risk of illicit finance.»
The decision follows a consultation and will come into force next September. The United Kingdom therefore makes a similar interpretation to Germany, with both countries judging that the measures in place are sufficient. Nothing is perceived for the crypto industry as a whole, which is increasingly under scrutiny globally.
👉 Learn more – European Union: German government opposes systematic monitoring of self-hosted wallets
Source: Her Majesty’s Treasury
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