Fri 15 November 2024 ▪
4
min reading ▪ acc
The European Union has just thrown a wrench into the water by publishing new guidelines that could very well be a game changer for crypto service providers. Enthusiasts of Bitcoin and other cryptoassets are asking: are we witnessing the end of freedom in the decentralized world of cryptocurrencies?
The EU reveals its cards: unprecedented restrictive measures
The European Banking Authority (EBA), the EU regulator, has recently published two sets of guidance specifically targeting payment service providers (PSPs) and crypto-asset service providers (CASPs).
These directives require industry operators to put robust control systems in place to comply with EU restrictive measures regimes.
Specifically, this means that every transfer of funds or cryptocurrencies must be carefully monitored.
PSPs and CASPs will need to filter information to prevent individuals or entities from circumventing established rules. The stated goal is to strengthen financial security and combat money laundering and terrorist financing.
This ABE initiative is part of the desire to fill the gaps in the financial sector. But to many it looks like a desire to dominate a universe that has always championed decentralization and freedom.
Cryptocurrency vendors therefore face a major challenge: how to comply with these new obligations without betraying the very spirit of cryptocurrencies?
Bitcoin and cryptocurrencies: towards mandatory compliance or suffocation?
Bitcoin enthusiasts know this well: the very essence of this digital currency lies in its decentralized nature and resistance to censorship.
It seems that with these new measures, the EU wants to strictly regulate an area that still partially escapes it. Some see this as a direct threat to the financial freedom that cryptocurrencies promise.
However, there is an important nuance. These guidelines are primarily intended to prevent illegal activities. After all, nobody wants cryptocurrencies to become a favorite playground for criminals. So the question is finding the right balance between security and freedom.
Crypto service providers have until December 30, 2025 to comply with these new rules.
This gives time to adjust, but the countdown is on. Players in this sector will need to redouble their efforts to integrate these responsibilities while maintaining the availability and fluidity of the services they offer.
It is undeniable that these restrictive measures will shake up the crypto landscape in Europe. But perhaps this is a necessary step to ensure the sustainability of Bitcoin and other cryptocurrencies. By meeting regulatory requirements, the sector could gain legitimacy and attract more institutional investors.
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Fascinated by Bitcoin since 2017, Evariste continued to research the topic. If his first interest was trading, now he is actively trying to understand all the developments focused on cryptocurrencies. As an editor, he strives to consistently deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.
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