Topic: The EU are not going to ban "Anonymous" wallets (Read 116 times)

Trustwallet is non-custodial wallet and give you full control over your money.
Even if trustwallet force the users to verify their identity, people will easily import their seed phrase (or their private keys) into another wallet and will access their fund again.

Centralized wallet providers like the Trustwallet which the developers may suddenly update their software and will likely ask for KYC. With powerful Banks behind it, they probably will do this in the guise of preventing terrorism funds. Wallets where we know who the team behind it could be targeted. 
We better import to a more decentralized and opensource wallet if we want to keep the privacy.

Well, Banks are trying to influence governments to go after "know" Open-source contributors of Bitcoin and other Crypto currencies, so they are definitely trying to get some target to shoot at..... and I think centralized wallet providers are in reach of their targets.

Bitcoin has always been about "Being in control" of your own wealth and centralized targets like wallet providers and Exchanges has been a easy target... so we should prepare for a full onslaught soon. (Other regulated Financial entities are making a lot of noise and governments are taking notice.. because they are funding their campaigns)  

You have a point but while I was checking the threaded tweets, none of them came close to hitting the limit.
^{- In other words, the blame should be on her or the person that was responsible for preparing it.}

In what terms? If you meant in regards to misleading newcomers, then they would probably succeed to some extent but if you were referring to their ban against the so-called "anonymous crypto wallets", then there are no differences between what they're trying to achieve and what custodial services are already doing.

Her statement is not a fud but she clearly doesn't know what the heck she is talking about and she only reads the script that someone else wrote for here.
There are clear proposals that will try to do the same thing like they tried in Netherland and forcing all services and exchanges to ask customers to kyc their own personal wallets.

I need to repeat her own words from the tweet, and fact is that there are NO anonymous custodial crypto wallets or anonymous crypto equivalent of Swiss bank accounts, so that Yahoo article is also bs:
https://twitter.com/McGuinnessEU/status/1417494016741023753

I did the same back in 2015, my problem was I downloaded bitcoin core first - realised it'd take ages to sync and so gave up and set up a coinbase wallet. Now for most things crypto related, you have to do some form of kyc so I can see their wallet tracking methods getting stronger unless enough people are able to discover wallets like electrum before giving away some of their anonymisation information. Even in bitcoin, privacy can be expensive - if you can't consolidate multiple inputs into 1 because you don't want the inputs to be linked then...

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Also the word limit in twitter is the main reason I haven't used it - unless you get a well explained thread, a video, or an announcement with a link - you're probably getting even less of a story you might've had.

What they manage to implement in the law will be effective, and that is only the part concerning the custodial service and the obligatory KYC, which is already present today. It was complete madness that someone concluded that the EU could ban any non-custodial wallet, but this is not strange considering that journalists also write things they do not understand at all.

The EU simply has to do something, because they understand that the crypto sector is in some way a threat to them, which they emphasized during the presentation of their plans regarding the digital euro. In other words, we will do everything we can to turn people away from crypto - because for those Brussels parasites, everything that is not under their control is bad - it is not that far from some less democratic countries.

Recently, in my country (an EU member state), a central bank and a financial regulatory body coordinated issued very clear warnings about cryptocurrencies - all because the turnover on the national stock market equated to the turnover of cryptocurrencies at local exchange offices - enough to scare elites into they lose the ground under their feet.

You're right in saying that the language has been used out of context and is generally FUD for those that do not understand the technical side of the operation, to scare them away ultimately.

In reality, open-source code cannot be restricted, but the EU is making a clear shot across the bow for financial companies that they better know who they are playing with if they want to play in this sandpit. I would say this is in response to the updated AML rules, compelling firms to have more insight.

It will just push more people to either leave these jurisdictions or undertake unregulated activities.

They should be spending more time and money understanding the technology and not just trying to throw barriers up.

Lets all move to Sealand!

The first wallet I had was Coinbase, I did not even know private key or seed phrase exists, all I knew at the time was not to forget my email and login password, that was at the ending of 2019. Until I joined this forum before knowing about seed phrase and private key, also the time I do not know about privacy and many others like that.

So, just know that people nowadays do not even know the differences between custodial and noncustododial wallet. I have a friend that just joined this forum, he did not also know the difference before when I had a conversation with him few weeks ago, I was the one that have just started to let him know the difference. All my friends like that with newbie knowledge, it is me that is correcting them.

You will not be surprised if you see people not on this forum that says binance is safe because they have been using it for years, some will say this or that custodial wallet is good because they have been using it for long but no problem encountered.

Most people nowadays do not know what is private key, they do not know seed phrase, they even think wallet is wallet, they do not know the differences between custodial and noncustododial wallet. People themselves even making the regulation easy for the governments by their lack of knowledge about what noncustododial is.

But the fact remains, no one can regulate noncustododial wallet, it is not possible.

There is a lot of misinformation in the internet about Bitcoin.

First of all, there is no such thing as a "wallet" in bitcoin protocol, only many privatekeys/ publickey pairs, which generate public addresses

You can link those public addresses together with some analysis, like looking for differnet addresses spending funds together...

The problem is that you can generate a new address for free, so basically every new public address out there is "anonymous' until someone is able to link it to a known public address.

So it is basically impossible to "ban crypto wallets". It is possible to impose rules on exchanges and custodial services, which simple need to apply to regulations. This is where KYC comes in....

This is where it all started, a tweet thread summarizing the proposed rules, Mairead McGuinness, the E.U. Commissioner for Financial Services, wrote that the measure “will ban anonymous crypto wallets and make sure that crypto-asset transfers are traceable.”

Source : https://finance.yahoo.com/news/no-european-union-not-banning-171752952.html

"The statement from McGuinness is straight-up FUD. Rather than a ban on crypto wallets, the E.U. rules would impose tighter but defensible rules on money service providers, such as exchanges or custody services."

This is how fast FUD is spread on the Internet... and also why Twitter is frequently misunderstood ...when people post too little on the subject, due to space restrictions.  

Mention is made that "wallets like MyCrypto, Exodus and Electrum are software, available for download worldwide....." ....So, the E.U. knows it can’t “ban anonymous crypto wallets.” But by obfuscating the difference between custodial wallets and self-custody software, they may hope they can mislead some portion of the public into thinking that custodial accounts are the only kind that exist.

Do you think there is a difference...and do you think a ban like this will be affective?