Circle’s EU Policy Chief Patrick Hansen Busts AMLR 2027 FUD
Patrick Hansen, Director of EU Strategy and Policy at Circle, has as soon as once more pushed again towards claims that Europe’s new Anti-Money Laundering Regulation (AMLR) will “ban” self-custody wallets or peer-to-peer crypto transactions.
It comes simply over every week after the Circle government warned that Dual MiCA–PSD2 licensing may double compliance prices for EU stablecoin companies.
No, the EU Isn’t Killing Self-Custody: Patrick Hansen Busts AMLR 2027 FUD
In a put up on X (Twitter), Hansen referred to as out misinformation circulating amongst main cryptocurrency accounts.
“Again, a bunch of massive crypto accounts are claiming upcoming AML guidelines will ban self-custody or nameless crypto & Bitcoin transactions within the EU. That’s unsuitable,” he articulated.
His feedback come as debate intensifies forward of the AMLR’s anticipated implementation round summer season 2027.
The complete framework is designed to fight cash laundering and terrorist financing throughout the European Union.
What the AMLR Actually Does—and Doesn’t Do
Contrary to social media panic, Hansen clarified that the AMLR’s obligations apply solely to crypto-asset service suppliers (CASPs). These embrace exchanges, brokers, and custodial wallets, not people utilizing self-custody options.
Key takeaways embrace:
- No ban on self-custody or P2P transactions. The regulation doesn’t limit peer-to-peer transfers or the usage of personal wallets.
- Hardware/software program wallets excluded. Providers like Ledger and MetaMask stay outdoors the AMLR’s compliance scope.
- Standard KYC for CASPs. Exchanges will proceed to observe present AML guidelines established underneath AMLD5 and MiCA.
- €10,000 money restrict. The regulation caps bodily money funds, although member states can undertake stricter thresholds.
In different phrases, AMLR reinforces present practices fairly than introducing sweeping new bans.
“The influence on self-custody wallets and CASPs could be very restricted, nearly zero,” Hansen explained in an earlier thread.
From FUD to Facts: Advocacy Softened Earlier Proposals
The closing AMLR textual content marks a win for crypto advocacy teams. Early drafts proposed extreme restrictions, together with €1,000 limits on self-custody funds and increasing AML obligations to DAOs, DeFi tasks, and NFT platforms.
Those measures have been in the end eliminated after in depth trade engagement. Hansen credited “schooling and advocacy efforts” for making certain a balanced consequence that preserves Europe’s innovation potential whereas sustaining regulatory safeguards.
For European crypto customers, the excellence is crucial. The AMLR focuses on intermediaries, not people managing their very own crypto property.
This means buyers can proceed utilizing self-custody wallets freely, whereas exchanges face clearer compliance expectations aligned with MiCA and the FATF journey rule. Still, Hansen cautioned that misinformation can distort public debate.
“Crypto Twitter and even some media proceed to misinterpret EU coverage. It’s very important to stay to the info,” he famous.
What’s Next: Implementation and Stablecoin Tensions
The AMLR awaits closing approval within the European Parliament earlier than taking impact in 2027. Meanwhile, Hansen has warned of one other looming challenge: regulatory overlap between MiCA and PSD2 rules.
According to Circle’s EU coverage director, this might “double compliance prices” for euro stablecoin issuers by 2026. Hansen referred to as this a possible “regulatory personal purpose” for the EU.
With MiCA already reshaping the region’s crypto market, Hansen’s clarification highlights that not all regulation spells restriction. It additionally means that typically, good advocacy keeps innovation alive.
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