⚖️ How EU’s Latest Crypto Policies Impact You
👋 Hi finance enthusiasts and fellow investors!
Today, I want to share a few words about regulation and political developments.
And not on what I believe will happen, but on what is currently happening. Many of you may have already heard the headline, but if not, here's the headline:
It's important to say: The ban on self-custodial wallets is not true, even though many news platforms have falsely reported it. The 1,000 EUR limit has now been revised. However, it is true that regulations are being significantly tightened. And I can guarantee one thing: These rules will become even stricter!
The implications are enormous: Not only is users' privacy being violated, but it could also lead to innovative business models, which are based on the anonymity and freedom of blockchain technology, becoming unfeasible in the EU.
The message behind these measures seems clear: The EU wants to regulate the crypto space more strictly. But here's the catch – such regulations could have the opposite effect of what was intended. Instead of combating crime, they will deter legitimate users and innovators and shift the development of the crypto economy to other, more regulation-friendly regions. Let's be honest: People already involved in illegal activities will not comply with the "guidelines" anyway. It mainly affects ordinary citizens.
For us as global investors, this is a wake-up call. We must be aware of the potential risks posed by such regulatory changes and simultaneously look for ways to protect our values and assets in an increasingly surveilled financial environment. It also underscores the importance of self-custody of cryptocurrencies and the use of hardware wallets to maintain control over our digital assets.
Does this come out of nowhere?
NO, this does not come entirely out of the blue. If you have been attentively reading my newsletter since last June, you know that I have shared a trick or two with you on how to prepare for something like this.
In the 14 Day Crypto Mastery course, we discussed this in detail. Here's a small excerpt from the course, talking about exactly that:
🎓 Day 10: Navigating the Future of Cryptocurrency
You might wonder what could possibly change?
For example, whether it is legal to own cryptocurrencies outside of state-accessible crypto wallets. It’s no joke – the EU is talking about such laws. In 2022, they wanted to tighten regulations on crypto-asset transactions, especially involving non-custodial or self-custody wallets. This included mandatory collection and retention of customer data for transactions over EUR 1,000, verification of such information by wallet providers and the possibility for “risk-based assessments” to decide on the rejection, suspension, or reporting of transactions…
Don’t believe me? Here you go: https://www.europarl.europa.eu/doceo/document/CJ12-PR-704888_EN.pdf
Fortunately, this has not been enforced. However, there are still efforts to restrict non-custodial addresses. A trend that will gain relevance in the future.
Well, as you can read, I can now update this lesson; the forecast that regulation would continue to pursue these efforts has come true…
What can we do about it?
Well, we can't change the laws. In the EU (and almost everywhere in the world except for Switzerland), there is no direct democracy. We are all now small cogs in a huge system. We don't decide here.
Surveillance of ordinary citizens will continue to intensify over the next few years. With planned projects like CBDCs (Central Bank Digital Currencies), we're taking a step further towards complete surveillance of citizens' money flows. Here are my thoughts on CBDCs:
The only thing we can do is prepare. If you haven't done so yet, then read through the article from last year again, where I share some important to-dos. Here's the link:
Otherwise, I can only recommend taking the 14 Day Crypto Mastery course. Here, I go into much more detail and explain exactly what you need to pay attention to, and give you some food for thought on how to prepare for the coming years.
Current Market Situation
Now, as I read through this message, I realize it lacks optimism. So here are a few words on the current market:
Even if it seems a bit boring right now, everything is going as it should. We have seen a 17% correction, bought in almost perfectly (Pro members know what I’m talking about: We Have Watched, We Have Waited – Now We Act), and now I believe that the journey will continue upwards.
In this sense: Enjoy your Easter weekend (for those who celebrate it) and otherwise, enjoy the weekend.
Until next week,
Stefan
Co-Founder of CryptoExplorer & InvestmentExplorer (coming soon)