Confusion swirled through the crypto world this weekend with claims of a Europe-wide ban on anonymous crypto transactions. But fear not, crypto enthusiasts! Industry expert Patrick Hansen has emerged to debunk these rumors.

Crypto Twitter Needs a Fact Check

Taking to Twitter, Hansen called out the misinformation. "Saturday's events," he wrote, "perfectly illustrate why relying solely on crypto social media (and often mainstream media) for policy updates isn't the best strategy."

The Truth Behind the Headlines

Here's the real story: the EU's new law isn't a crypto-targeting missile. It's a broad anti-money laundering (AML) framework aimed at all financial institutions, including crypto-asset service providers (CASPs) and even services like gambling that pose AML risks.

CASPs Under the AML Umbrella

"This law," Hansen clarifies, "focuses on AML, not specifically crypto regulation." CASPs operating under the EU's Markets in Crypto Assets (MiCA) framework will need to follow standard KYC/AML procedures like customer due diligence (CDD).

Anonymous Wallets Still Have a Place

Contrary to the rumors, the law doesn't completely shut the door on anonymous wallets. Existing AML regulations already prohibit custodial wallets (those where a third party holds your crypto) from serving anonymous users, and this remains unchanged. Additionally, the law aligns with existing global practices by restricting CASPs from offering accounts for privacy-focused cryptocurrencies.

MiCA Already Addressed Anonymity

Remember MiCA, the EU's crypto regulation? It already prohibits crypto listings with built-in anonymity features. So, no surprises there!

Limited Impact on the Cryptosphere

In Hansen's view, the new AML law primarily reaffirms existing AML rules for CASPs. Its impact on the European crypto sector is "extremely limited." There are no new restrictions on using your own crypto wallet, buying goods and services, or engaging in peer-to-peer transfers.

The Final Word: Almost There

The final text of the law has been approved by the ECON committee and just needs a final green light from the EU Parliament and Council. So, breathe easy, crypto users – your anonymous wallets are safe (for transactions outside regulated exchanges).