Members of the European Parliament have approved a controversial regulation that could undermine the decentralized finance sector in the EU.
The European Parliament’s Committee on Economic and Monetary Affairs .
However, “the rules would not apply to person-to-person transfers conducted without a provider, such as bitcoins trading platforms, or among providers acting on their own behalf,” the Parliament’s press service noted.
Furthermore, processors of crypto transactions will be able to stop transfers originating from or sent to non-compliant providers.
If it’s not challenged, the draft will move to the trilogue stage, the next phase of the EU’s legislative process, during which it must be agreed upon with the European Commission and the Council of the European Union.
Just like the PoW ban, the TFR paragraphs sparked negative reactions from the Old Continent’s crypto community.
Industry watchers not only consider these regulations an attempt to ban unhosted wallets and restrict the defi sector, but also warn that Europe’s prospects as a crypto destination are under threat.
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