Digital Wallet
By Dan Saada
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ECON is The Committee on Economic and Monetary Affairs (ECON) of the European Parliament. The proposal requires crypto-service providers, such as exchanges, to collect and share…
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This is meant to ensure traceability of transfers between crypto services providers and unhosted wallets.
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“Unhosted Wallets” refers to those wallets with a private key that the individual maintain by themselves as opposed to having a wallet from a custodian cryptocurrency exchange.
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Thus, the information about the payee and payer should be tracked in crypto transfers if the value of the transfer exceeds 1,000 Euros.
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The purpose of this approach is to close the gaps in the financial systems. These gaps when unattended to gets used for criminal purposes.
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Verification is obliged to prevent to prevent crime and corruption using unhosted wallets. It has also been reinstated that “Crime and Corruption are not Innovation.”
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This law will help unleash an entire surveillance regime on exchanges like Coinbase. This can also undermine self-hosted wallets which individuals use to protect digital assets.
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Paolo Ardoino: Disappointed to see the proposal on self hosted wallets passed today and hope the final vote on the report will take in to consideration security risks and privacy…
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Requiring crypto service providers to collect and verify personal data related to self hosted wallets transfers raises major data and privacy concerns, and represents a big step…
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Hope the ECON Committee will draft a text that would incentivize innovation, transparency as well as consumers protection in the EU.
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Community Reaction: KYC will hold entities accountable to the government level if fully enforced. That can bring to light world crimes.
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The EU will create one of the biggest honeypots ever, a honeypot that basically puts all digital asset investors at risk of getting shot in the head and robbed.
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The best scenario would be to not do what they are doing, but I think that ship has sailed. The other risky scenario is them only allowing exchanges to custody digital assets,…
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MEPs know nothing about tech, especially blockchain tech, we need to inform them that there are techs that can help do AML while preserving as best as possible our safety and…
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