Well, it is a bit more subtle than that. The issue is control.
As long as the crypto in self custody wallets moves between self-custody wallets, there is no issue. As soon as you want to exchange it for fiat .... then the EU requires KYC processes be implemented.
This means, it is not prohibited, it is subjected over 3000 Euro' s to KYC process, meaning, mandatory identification with STATE issued ID. It means that as soon as you want EURO' s for your crypto, you have to conform to the STATE-ID laws, be identified and pay taxes on the transaction, as the data will be shared with the tax office. Your wallet at exchanges then will become subject to impounding if needs be.
It also means one has to think carefully before committing to an exchange from EURO to crypto and vice versa.
This means that the ecosystem to remain outside of EU control and datasharing, will grow.
Well, it is a bit more subtle than that. The issue is control.
As long as the crypto in self custody wallets moves between self-custody wallets, there is no issue. As soon as you want to exchange it for fiat .... then the EU requires KYC processes be implemented.
This means, it is not prohibited, it is subjected over 3000 Euro' s to KYC process, meaning, mandatory identification with STATE issued ID. It means that as soon as you want EURO' s for your crypto, you have to conform to the STATE-ID laws, be identified and pay taxes on the transaction, as the data will be shared with the tax office. Your wallet at exchanges then will become subject to impounding if needs be.
It also means one has to think carefully before committing to an exchange from EURO to crypto and vice versa.
This means that the ecosystem to remain outside of EU control and datasharing, will grow.
I'm guessing they can eat a bag of dicks.