European Union, MiCA license, digital euro, crypto regulations, European Parliament Digital Euro CBDC. Photo by BeInCrypto
Patrick Hansen, Director of EU Strategy and Policy at Circle, has once again pushed back against claims that Europe’s new Anti-Money Laundering Regulation (AMLR) will “ban” self-custody wallets or peer-to-peer crypto transactions.
It comes just over a week after the Circle executive warned that Dual MiCA–PSD2 licensing could double compliance costs for EU stablecoin firms.
In a post on X (Twitter), Hansen called out misinformation circulating among major crypt…
European Union, MiCA license, digital euro, crypto regulations, European Parliament Digital Euro CBDC. Photo by BeInCrypto
Patrick Hansen, Director of EU Strategy and Policy at Circle, has once again pushed back against claims that Europe’s new Anti-Money Laundering Regulation (AMLR) will “ban” self-custody wallets or peer-to-peer crypto transactions.
It comes just over a week after the Circle executive warned that Dual MiCA–PSD2 licensing could double compliance costs for EU stablecoin firms.
In a post on X (Twitter), Hansen called out misinformation circulating among major cryptocurrency accounts.
“Again, a bunch of big crypto accounts are claiming upcoming AML rules will ban self-custody or anonymous crypto & Bitcoin transactions in the EU. That’s wrong,” he articulated.
His comments come as debate intensifies ahead of the AMLR’s expected implementation around summer 2027.
The comprehensive framework is designed to combat money laundering and terrorist financing across the European Union.
Contrary to social media panic, Hansen clarified that the AMLR’s obligations apply only to crypto-asset service providers (CASPs). These include exchanges, brokers, and custodial wallets, not individuals using self-custody solutions.
Key takeaways include:
No ban on self-custody or P2P transactions. The regulation does not restrict peer-to-peer transfers or the use of private wallets.
Hardware/software wallets excluded. Providers like Ledger and MetaMask remain outside the AMLR’s compliance scope.
Standard KYC for CASPs. Exchanges will continue to follow existing AML rules established under AMLD5 and MiCA.
€10,000 cash limit. The regulation caps physical cash payments, though member states can adopt stricter thresholds.
In other words, AMLR reinforces existing practices rather than introducing sweeping new bans.
“The impact on self-custody wallets and CASPs is very limited, almost zero,” Hansen explained in an earlier thread.
The final AMLR text marks a win for crypto advocacy groups. Early drafts proposed severe restrictions, including €1,000 limits on self-custody payments and extending AML obligations to DAOs, DeFi projects, and NFT platforms.
Those measures were ultimately removed after extensive industry engagement. Hansen credited “education and advocacy efforts” for ensuring a balanced outcome that preserves Europe’s innovation potential while maintaining regulatory safeguards.
For European crypto users, the distinction is critical. The AMLR focuses on intermediaries, not individuals managing their own crypto assets.
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