Cryptocurrencies in the European Union will soon cease to be anonymous
The main advantage due to which cryptocurrencies have gained their enormous popularity is complete anonymity.
Crypto wallets are anonymous and do not require documents to confirm identity when opened, but the era of anonymity is probably gradually coming to an end.
From December 30, 2024, cryptocurrency companies in Europe will have to comply with EU regulations under a new regulation (No. 2023/1113) adopted on May 31, 2023.
It obliges to identify the actual owner and controller of wallets in any transactions involving non-custodial (personal) addresses.
Blockchain addresses will become somewhat similar to bank accounts, where anonymity is no longer guaranteed.
It is quite difficult to imagine how the indication will be implemented in practice; most likely, during the first exchange from a new wallet, the company performing the exchange will request an indication of identity and after this data will be linked to the cryptocurrency wallet.
After this, this wallet will become personalized and all its transactions through third-party companies will be associated with a specific person.
That is, after December 30, 2024, it will be quite difficult to anonymously exchange cryptocurrencies for the currencies of countries belonging to the European Union.
But still, you should not be upset, since there will still be gray exchange schemes, such as those that operate today in Ukraine, where it is completely prohibited to carry out transactions with cryptocurrencies, but exchanges still take place.
The new regulation will most strongly affect exchanges at bitcoin machines (machines for exchanging cash) and companies that exchange offline, directly with the client.
In these cases, it is still required to indicate the identity if the transaction amount exceeds 1000 euros, and after the innovation the indication will become mandatory.
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