The European Union is implementing regulations under the AMLR that require crypto-asset service providers to follow standard KYC/AML procedures and restrict anonymous accounts or privacy coins. This is not a new practice in the industry, according to experts like Hansen.

The AMLR also mandates "risk-mitigating" measures for transfers between CASPs and self-custody wallets, such as blockchain analytics or collecting additional data about the origin/destination of crypto-assets. This aligns with the TFR, the EU implementation of the FATF travel rule.

The ongoing debate surrounding the EU's new anti-money laundering regulations reflects a balance between fighting financial crime and protecting citizens' rights to privacy and economic freedom. While some critics like Patrick Breyer view the regulations as a threat, others like Patrick Hansen believe they align with existing practices. Monitoring the impact of these regulations on money laundering and EU citizens' rights will be essential.

Despite concerns about the strictness of the regulations, holding crypto in an anonymous, non-KYC wallet will not be illegal in the EU. However, there will be limitations on transactions without revealing identity. With potential future restrictions on money transfers, the use of non-KYC wallets in the EU may become even more restricted.