Crackdown out of the Shadows

     The European Union has cleared new AML rules for crypto transactions as part of the MiCA framework. From now on, exchanges must verify the identity of both senders and recipients when crypto is sent from a private wallet to an exchange. For transactions over €1k, providers must verify the wallet owner's identity. Cash payments over €10k are banned.

Analysts are divided

     Like always, analysts are not speaking in one voice. Some see the rules as a "necessary evil", for market transparency, protecting against hacking and fraud at the cost of financial freedom. Others predict crypto projects will flee the EU for more lenient jurisdictions like Dubai, citing regulatory and tax advantages.

My Point

     Crypto is for financial freedom, not for new financial slavery. The rules, ostensibly aimed at preventing terrorist financing, are really about the EU getting its tax share on people's hard-earned money, which they consider as theft. EU people will lose privacy and wallet holders may lose access to external exchange services - but only if those exchanges stay in EU.