Cryptocurrency: US-EU Goes 1984 Crazy with AML-KYC

grarpamp grarpamp at
Thu Jun 30 19:14:19 PDT 2022

Get off Bitcoin and Launch and Adopt P2P Privacy Coins and DEX
instead, but you didn't listen, now all your shit is set to be censorbanned.
You wasted at least seven years developing and adopting
worthless human rights and freedom infringing non-private
shitcoins... when are you going to stop fucking yourselves?
Quit wasting time. Tyrants, EU MICA 2

European Commission agreed on a deal for stringent and invasive AML
for all crypto services, including linking your onchain wallets to
user's KYC details. This drastically destroys user's privacy

Yesterday the EU framed new KYC and AML mandates that affect all
crypto service providers including exchanges and wallets.

EU Rep: After months of negotiations with the Council, we agreed the
most ambitious travel rule for transfers of crypto-assets in the
world. We are putting an end to the wild west of unregulated crypto,
closing major loopholes in the European anti-money laundering rules.

With this deal, they are now slapping travel rule requirements across
europe for all crypto entities. They have to now track every wallet
level information of users and allow withdrawals only to wallets that
have been verified by users as belonging to them. This is known as
travel rule, and is already in place in some countries but with this
deal, it will apply to the whole of the EU. Presently, Swiss exchanges
require you prove your wallet belongs to you. Now, the whole of EU is
going into this standard.

If you are withdrawing funds or sending funds to an exchange, the onus
now falls on the exchange to ensure the wallet is KYC'd to you. You
will have to sign a message from the wallet to prove you are the owner
of the wallet. Otherwise, the exchange may not be able to accept these

According to these laws,

    The regulation will also apply o transfers from/to unhosted
wallets. CASPs will be required to collect information and apply
enhanced due diligence measures with respect to all transfers
involving unhosted wallets, on a risk basis.

This means the exchanges and centralised services will have to collect
information and do all kinds of due diligence on where the funds
originated from, if you are sending funds from your personal on-chain
wallets to these centralised entities. They may reject your funds
arbitrarily, and even hold your funds hostage if you dont pass some of
their automated checks.

    Verification of the identity of the beneficial owner of the
unhosted wallet will be mandatory for large transfers above 1000€ in
case the transfer is made to or from the wallet belonging to the
CASP’s own client.

This means if your transaction exceeds 1000€, the onchain wallets
(termed as unhosted wallet in regulatory speak) identity has to be
verified. Imagine this - doing a passport or drivers license
verification on Jumio everytime you send a €1000 transaction from a
new wallet....PS: Unhosted wallet terminology is total nonsense,
devised by unelected agencies like FATF to stigmatise onchain crypto
users. Purely, from crypto's technical perspective, the term
"unhosted" doesnt mean anything. Its not hosted on their fiat system,
so its unhosted? Lol.. these classifications have been created solely
to limit access and differentiate onchain crypto users vs those using
the fiat rails.

Some other policies that are part of this deal:

    New risk-mitigation measures will be in place: CASPs will be
required to perform enhanced due diligence before establishing a
business relationship with CASPs operating in third countries.
Specific enhanced due diligence will apply to unregistered and
unlicensed entities.

The whole "deal" originates from a position where anyone using crypto
is being seen as an adversary, and they want the centralised entities
to limit such users as much as possible. It also empowers centralised
agencies even more to lock, seize and hold hostage user's funds by now
taking shelter under a host of new AML mandates. Lets say you made an
onchain trade for a new coin on a new chain, and that mooned and now
you want to cash out, but the exchange doesnt accept this, then they
can hold your funds hostage

The EU is clearly focussed more on limiting people's financial privacy
than taking any kind of action on the massive wave of inflation that
EU countries are currently facing. This EP member Ernest Urtasun's
country Spain is facing record inflation of over 10%.. and all they
can think of is gutting people's right to financial privacy.

These are draconian laws and restrictions on people using their own
funds. Just to please a bunch of bureaucrats, you will have to
sacrifice on your privacy. The need for P2P services rises even more
now where you can continue to trade and exchange crypto without the
need of centralised intermediaries.

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