It's funny because a member of Parliament even confused "hosted wallet" and "self hosted" - tweet: https://twitter.com/echo_pbreyer/status/1770853123633877233 - law text: https://www.europarl.europa.eu/meetdocs/2014_2019/plmrep/COMMITTEES/CJ12/AG/2024/03-19/1297044EN.pdf > ...procedures and controls should be proportionate to the nature of the business, including its risks and complexity, and the size of the obliged entity and respond to the risks of money laundering and terrorist financing that the entity faces, including, for crypto-asset service providers, transactions with self-hosted wallets. > In doing so, obliged entities should take into account the characteristics of their customers, the products, services or transactions offered, including, for crypto-asset service providers, transactions with self-hosted addresses
HN discussions: - https://news.ycombinator.com/item?id=39793842 - https://news.ycombinator.com/item?id=39798290
From a Twitter space: - The text is finalized - Legislation had been worked on for 4 years - Scope: Legislation applies to, e.g., traders, banks, etc., and now new "crypto asset service providers" (exchanges, custodians). It may not apply to you personally. This does not apply to e.g., staking providers or wallets - Crypto asset service providers must do KYC below 1000€. With higher amounts, there is more due diligence needed - anonymizing techniques like Monero are prohibited for crypto asset service providers. The legislation defines this specifically - More on scope: Does apply most likely to regulated professions https://twitter.com/EuCInitiative/status/1771577258907435103