Here's the full proposal btw:
https://ec.europa.eu/finance/docs/law/210720-proposal-funds-transfers_en.pdfI've only skimmed it, but at a first glance it only seems to affect the likes of exchanges and custodial wallets:
This Regulation shall apply to transfers of funds, in any currency, => or cryptoassets, <= which are sent or received by a payment service provider => , a crypto-asset service
provider, <= or an intermediary payment service provider established in the Union.
Where crypto-asset service provider is defined as:
(8)‘crypto-asset service provider’ means any person whose occupation or business is the provision of one or more crypto-asset services to third parties on a professional basis;
(9)‘crypto-asset service’ means any of the services and activities listed below relating to any crypto-asset:
(a)the custody and administration of crypto-assets on behalf of third parties;
(b)the operation of a trading platform for crypto-assets;
(c)the exchange of crypto-assets for fiat currency that is legal tender;
(d)the exchange of crypto-assets for other crypto-assets;
(e)the execution of orders for crypto-assets on behalf of third parties;
(f)placing of crypto-assets;
(g)the reception and transmission of orders for crypto-assets on behalf of third parties
(h)providing advice on crypto-assets;
So while not especially pretty at least to me it doesn't seem much worse than existing KYC/AML regulations. Except it sounds like a lot more paper work for exchanges.
