Wallet Host Identity Revealing Bill Approved for Final Vote

The bill received majority approval during the ECON – LIBE voting session.

The law is also unlikely to face opposition during the final vote.

The crypto community sees this as a significant setback for self-hosted wallets.

Crypto's sovereignty is based on its decentralization, anonymity, and independence, yet it appears that the EU Parliament is uninterested.

The vote session that completed today puts the existence of self-hosted wallets in jeopardy, as no one in the European Union would willingly give up their right to anonymity.

Another Threat to Crypto

The results of the roll-call votes in the ECON – LIBE voting session were tabulated as 58 in favor, 52 against, and 7 abstentions. As a result, the revisions to the Transfer of Funds Regulation are approved.

Crypto service providers will be forced to authenticate the identity of the owners of self-hosted wallets, also known as "Unhosted wallets," under these revisions.

The threat, however, does not stop with these wallets; crypto service providers, especially cryptocurrency exchanges, would also be targeted by regulators.

And if this bill passes, regulators will have the weapons they need to constantly monitor them, defeating the point of crypto.

People use these self-hosted wallets to preserve their privacy and security.

Nonetheless, the EU Parliament aims to eliminate it since the possibility of an unjustified probe into one's business will deter individuals from utilizing it, therefore ending the service in the EU.

The Trilogues

There is a slim likelihood that the law may face opposition before it is voted on in its final form.

However, things could change at the European Commission and European Council Trilogues.

The Trilogue, which is set to begin in the next two weeks and end in mid-April, might have repercussions for the bill.

Formal trilogue conversations are usually held within the context of a conciliation body, which in this case is the European Commission.

The outcome of the trilogues is the conciliation committee's formal decision, which cannot be overturned by either the EU Parliament or the EU Council.