Crypto Industry Rallies Ahead of Vote on Controversial EU Crypto Regulation
As the European Union institutions are advancing their discussions on the controversial Transfer of Funds Regulation (TFR), crypto industry representatives are looking to hamper the proposal’s potentially harmful impact on the sector’s future development.
Among others, the regulation could pave the way for a crackdown on so-called "unhosted wallets," or just regular crypto wallets. Art. 5 of the draft requires exchanges to report to the authorities everytransfer from a non-customer’s wallet of at least EUR 1,000 (USD 1,1115).
Lavan Thasarathakumar, Director of Government and Regulatory Affairs at Global Digital Finance (GDF), said in a letter to members of the European Parliament that the industry body wants to draw decision-makers’ attention to the need to: adopt a proportionate approach to "unhosted wallets," reinstate the EUR 1,000 threshold and remove blanket reporting to competent authorities, and extend the phase-in period.
“GDF proposes that a period of 12 months for phase-in requirements and 24 months for implementation are put in place. This will give exchanges enough time to put in place the measures to deal with this,” he said.
Thasarathakumar added that, while the GDF welcomes the anti-money laundering package, there is a concern within the crypto industry “the requirements highlighted above may lead to exchanges deeming it commercially unviable to engage with unhosted wallets; creating a de facto ban.”
Meanwhile, Patrick Hansen, Head of Strategy and Business Development at Unstoppable Finance, tweeted that, with the European Parliament’s Committee for Economic and Monetary Affairs (ECON) scheduled to vote on the draft regulation this Thursday, Brussels leaves him and other industry players “no choice” but to
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