Fri 15 Nov 2024 ▪
4
min reading ▪ by
Evans S.
The European Union has just thrown a wrench into the water by publishing new guidelines that could well be a game-changer for crypto service providers. Bitcoin and other crypto-asset enthusiasts are wondering: are we witnessing the end of freedom in the decentralized world of cryptos?
The EU reveals its cards: unprecedented restrictive measures
The European Banking Authority (EBA), the EU's regulatory body, recently published two sets of guidelines specifically targeting payment service providers (PSPs) and crypto-asset service providers (CASPs).
These directives require industry players to put in place robust control systems to comply with EU restrictive measures regimes.
Concretely, this means that each 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 objective is to strengthen financial security and fight against money laundering and the financing of terrorism.
This ABE initiative is part of a desire to fill the gaps in the financial sector. But for many, this looks like a desire to control a universe that has always advocated decentralization and freedom.
Crypto suppliers therefore find themselves facing a major challenge: how to comply with these new obligations without betraying the very spirit of cryptocurrencies?
Bitcoin and cryptos: towards mandatory compliance or suffocation?
Bitcoin enthusiasts know it well: the very essence of this digital currency lies in its decentralized nature and its resistance to censorship.
With these new measures, the EU seems to want to strictly regulate an area which still partly escapes it. Some see this as a direct threat to the financial freedom promised by cryptos.
However, it is important to nuance. These guidelines are primarily intended to prevent illegal activities. After all, no one wants cryptocurrencies to become a favorite playground for criminals. The question is therefore to find the right balance between security and freedom.
Crypto service providers have until December 30, 2025 to comply with these new rules.
This allows time to adapt, but the countdown is on. Players in the sector will have to redouble their efforts to integrate these obligations while preserving the accessibility 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 complying with regulatory requirements, the sector could gain legitimacy and attract more institutional investors.
Maximize your Cointribune experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
Evans S.
Fascinated by bitcoin since 2017, Evariste has continued to research the subject. If his first interest was in trading, he is now actively trying to understand all the advances centered on cryptocurrencies. As an editor, he aspires to continually deliver high-quality work that reflects the state of the industry as a whole.
DISCLAIMER
The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.
