Bitcoin dropped $2,000 from $47,500 to $45,500 in four hours after news broke that the EU is set to cripple innovation in the blockchain space.
This includes cold wallets such as Ledgers, Trezor, and SafePal, as well as hot wallets like MetaMask, Trust Wallet, MEW, and many others.
If you wish to use an unhosted wallet, you must register it with an exchange while revealing your entire identity.
The EU Parliament’s vote on the TFR is a big disappointment and a big threat to individual privacy and the use of self-custody wallets in the EU.
If I have to register with a company and hand over my ID to transact, then that information will need to become centralized and is vulnerable to attack.
Currently, the limit is 1,000 EUR, above which you are required to register with an exchange and reveal your personal information.
However, the most challenging aspect is if you want to send crypto from an exchange wallet to a friend who lives outside of the EU.
Companies will have nine months to adapt to the new ruling and then 18 months to ensure they fully comply with the new regulations.
A European citizen cannot be stopped from interacting with a DeFi project outside of the EU that does not require KYC, so this may be Europe simply shooting themselves in the foot by alienating innovative companies.
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