Protect Your Non-Custodial Bitcoin Wallet — Support The Open Dialogue Foundation

In a new report, the Open Dialogue Foundation (ODF) provides an overview and analysis of upcoming regulatory proposals around non-custodial Bitcoin and crypto wallets in the European Union (E.U.).

Some of the proposals — many of which are based on FATF recommendations — will negatively affect users’ ability to transact with crypto assets privately.

Important takeaways from the report include:

• According to guidelines from the European Banking Authority (EBA), the current regulatory framework around crypto assets in the E.U. allows for actions that pose significant risks, including immediate withdrawals to non-custodial wallets and the use of anonymity-enhancing tools like mixers.
• Forthcoming Markets in Crypto-Assets Regulation (MiCA) regulation may influence Crypto-Asset Service Providers (CASPs) to adopt stricter AML/KYC practices.
• Regulation from the E.U. may prohibit CASPs from facilitating anonymous transactions, which would both reduce privacy for users of crypto-assets and increase operational costs for CASPs.
• The obligations that may be imposed on CASPs will conflict with the rise of proliferation of open-source technologies like the Lightning Network, Fedimint and ecash, which let users transact privately and in a censorship-resistant manner.

Do I share this all because I’m trying to ruin your holiday season? No, sirs and ma’ams.

I share it because we should be grateful for the work that the Open Dialogue Foundation does in shedding light on what’s happening within the regulatory landscape in the E.U. (especially as it pertains to non-custodial crypto wallets) and in developing relationships with elected officials in the E.U. to educate them on the importance of Bitcoin and other freedom technologies.

So, if you’re looking to make a tax-deductible donation to a nonprofit before the year is out, consider donating to the ODF.

And if you’re thinking either “Well, I don’t live in the E.U., so this doesn’t affect me” or “I do live in the E.U., but I’ll just move if it passes bad regulation,” I’d asking you to consider the following two points, (the first of which I lifted directly from this recent ODF report):

1. The European Union plays a central role in shaping global financial regulatory standards (which means that crypto transaction privacy advocates across the globe have something at stake here).
2. The organization making many of the proposals for the new regulatory framework in the E.U. — the FATF — is an international one, and it will leverage any wins it chalks up in the E.U. to influence regulation in other jurisdictions.

But, again, don’t be scared; be grateful.

Donate to the ODF to support its efforts, or do what you can to amplify the organization’s messaging.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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