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Alex Dovbnya

Cryptocurrency companies are attempting to make the EU soften its stance on unhosted wallets during the so-called trilogue talks

Iota, a protocol designed for the Internet of Things, has joined a last-ditch push to avert the upcoming crackdown on unhosted wallets in the European Union, Politico Europe reports.

The Berlin-based project states that the controversial regulation prohibiting anonymous transactions could derail the growth of IoT technologies in the region. For instance, drivers would not be able to pay for parking with their unhosted wallets.

As reported by U.Today, the provisions that require companies to verify the identities of those who transfer funds between noncustodial cryptocurrency wallets were greenlit by the European Parliament in late March despite major pushback from the cryptocurrency community.

Pascal Gauthier, chief executive officer of French cryptocurrency hardware wallet provider Ledger, claims that the new rules are “an invasion of people’s personal freedoms.” 

 Other major European companies are also stepping up their lobbying efforts, hoping to soften the language of the draconian provisions that critics say would deliver a blow to privacy in the EU. Moreover, smaller cryptocurrency companies will likely struggle to follow such disclosure requirements due to high costs, which will force them out of the market.

The amendments in question are currently being debated by other European institutions (namely, the Council and Commission). They are supposed to be finalized by June before becoming law.

Members of the European Parliament have not been swayed by the outcry. They claim that cryptocurrency companies have to follow the same standards as other financial firms.

Yet, industry leaders are pinning their hopes on the Council and Commission leaving unhosted cryptocurrency wallets unscathed after the so-called trilogue talks.

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