Circle’s EU Policy Chief Patrick Hansen Busts AMLR 2027 FUD

Core Viewpoint - The European Union's upcoming Anti-Money Laundering Regulation (AMLR) will not ban self-custody wallets or peer-to-peer (P2P) crypto transactions, contrary to misinformation circulating in the cryptocurrency community [1][2]. Summary by Sections AMLR Overview - The AMLR is designed to combat money laundering and terrorist financing across the European Union [3]. - The obligations of the AMLR apply only to crypto-asset service providers (CASPs), such as exchanges, brokers, and custodial wallets, and do not affect individuals using self-custody solutions [4]. Impact on Self-Custody and P2P Transactions - The regulation does not impose restrictions on peer-to-peer transfers or the use of private wallets, meaning self-custody wallets remain unaffected [7]. - Hardware and software wallets, such as those provided by Ledger and MetaMask, are excluded from the AMLR's compliance scope [7]. Changes from Initial Proposals - The final text of the AMLR reflects a more balanced approach after advocacy efforts, removing severe restrictions that were present in earlier drafts, such as €1,000 limits on self-custody payments [5][6]. - The regulation focuses on intermediaries rather than individuals managing their own crypto assets, which is crucial for European crypto users [6]. Compliance and KYC Requirements - Exchanges will continue to follow existing AML rules established under AMLD5 and MiCA, maintaining standard Know Your Customer (KYC) requirements for CASPs [7]. - The regulation also caps physical cash payments at €10,000, although member states can adopt stricter thresholds [7].