The Open Dialogue Foundation (ODF) has released a new report that outlines and analyzes upcoming regulatory proposals concerning non-custodial Bitcoin and crypto wallets in the European Union (E.U.).
Many of these proposals, influenced by FATF recommendations, could hinder users’ ability to transact privately with crypto assets.
EU & FATF 2025: Your Bitcoin Wallet’s New Rules?
What is the best Christmas gift from human rights, privacy and Bitcoin advocates? @ODFoundation provides you with insights on using #Bitcoin p2p wallets and privacy payment tools. pic.twitter.com/YZIlCZjSiR
Guidelines from the European Banking Authority (EBA) indicate that the existing regulatory framework permits actions that could pose risks—such as immediate withdrawals to non-custodial wallets and the use of anonymity-enhancing tools like mixers.
The upcoming Markets in Crypto-Assets Regulation (MiCA) may compel Crypto-Asset Service Providers (CASPs) to implement more stringent AML/KYC protocols.
E.U. regulations could forbid CASPs from facilitating anonymous transactions, undermining user privacy and increasing costs for CASPs.
The potential requirements for CASPs may contradict the growth of open-source technologies like the Lightning Network, Fedimint, and ecash, which allow for private and censorship-resistant transactions.
Am I sharing this to ruin your holiday season? Absolutely not.
My intention is to highlight the important work the Open Dialogue Foundation does in informing us about regulatory developments in the E.U., especially concerning non-custodial crypto wallets, and in fostering dialogue with E.U. officials about the significance of Bitcoin and similar technologies.
If you’re seeking a tax-deductible donation option before the end of the year, please consider supporting the ODF.
If you’re thinking, “This doesn’t affect me since I don’t live in the E.U.” or “I’ll just relocate if bad regulations are enacted,” I’d like to draw your attention to two important points (the first of which is taken from the recent ODF report):
The European Union is influential in setting global financial regulatory standards, meaning that crypto transaction privacy advocates worldwide have a vested interest.
The FATF, which is pushing for many of these regulatory changes in the E.U., is an international body that will use its successes in the E.U. to impact regulations elsewhere.
So, don’t be anxious; be thankful.
Support the ODF’s initiatives or help amplify their messages.
This article is a Take. The views expressed are solely those of the author and do not necessarily represent those of BTC Inc or Bitcoin Magazine.
This rewritten version maintains the original meaning while altering the structure and language for clarity and engagement.
