The European Union vs. Self-Hosted Crypto Wallets

The Breakdown

Blockworks

Business, Investing

4.8 • 806 Ratings

🗓️ 1 April 2022

⏱️ 18 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

This episode is sponsored by Nexo.io, Arculus and FTX US. The EU Parliament today voted to advance new anti-money laundering (AML) rules that would require European crypto asset service providers to collect and verify information about the beneficial owners of all self-hosted (or “unhosted,” to use their terms) wallet owners. The crypto industry sees this as a fundamental threat to decentralized finance (DeFi) and many other parts of the industry. NLW explains sentiment on both sides and what happens from here. - Take your crypto to the next level with Nexo. Invest and swap instantly, earn up to 20% APR on your idle assets or borrow cash against them at industry-leading rates. Get started today at nexo.io to receive up to a $100 welcome bonus. Valid through March 31. - Arculus™ is the next-gen cold storage wallet for your crypto. The sleek, metal Arculus Key™ Card authenticates with the Arculus Wallet™ App, providing a simpler, safer and more secure solution to store, send, receive, buy and swap your crypto. Buy now at amazon.com. - FTX US is the safe, regulated way to buy Bitcoin, ETH, SOL and other digital assets. Trade crypto with up to 85% lower fees than top competitors and trade ETH and SOL NFTs with no gas fees and subsidized gas on withdrawals. Sign up at FTX.US today. - Consensus 2022, the industry’s most influential event, is happening June 9–12 in Austin, TX. If you’re looking to immerse yourself in the fast-moving world of crypto, Web 3 and NFTs, this is the festival experience for you. Use code BREAKDOWN to get 15% off your pass at www.coindesk.com/consensus2022. - Enjoying this content? SUBSCRIBE to the Podcast Apple: https://podcasts.apple.com/podcast/id1438693620?at=1000lSDb Spotify: https://open.spotify.com/show/538vuul1PuorUDwgkC8JWF?si=ddSvD-HST2e_E7wgxcjtfQ Google: https://podcasts.google.com/feed/aHR0cHM6Ly9ubHdjcnlwdG8ubGlic3luLmNvbS9yc3M= Join the discussion: https://discord.gg/VrKRrfKCz8 Follow on Twitter: NLW: https://twitter.com/nlw Breakdown: https://twitter.com/BreakdownNLW - “The Breakdown” is written, produced by and features Nathaniel Whittemore aka NLW, with editing by Rob Mitchell, research by Scott Hill and additional production support by Eleanor Pahl. Adam B. Levine is our executive producer and our theme music is “Countdown” by Neon Beach. The music you heard today behind our sponsor is “I Don't Know How To Explain It” by Aaron Sprinkle. Image credit: SEAN GLADWELL/Getty Images, modified by CoinDesk. Join the discussion at discord.gg/VrKRrfKCz8.

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome back to The Breakdown with me, NLW.
0:09.1	It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.
0:15.0	The breakdown is sponsored by nexo.io, Arculus, and FtX, and produced and distributed by CoinDesk.
0:22.7	What's going on, guys? It is Thursday, March 31st, and today we are talking about self-hosted
0:28.8	wallets and why they're coming under fire in the European Union. First, however, if you are
0:34.9	enjoying the breakdown, please go subscribe, give it five stars, where you can rate it, leave a review, or if you want to dig deeper into the conversation around crypto, macro, regulations, really anything that matters in this world of big picture power shifts.
0:50.9	Come join us on the breakers discord. You can find a link in the show notes or go to
0:54.7	bit.le. That's bit.ly. That's bit.L.Y slash breakdown pod. Also a disclosure, as always,
1:00.6	in addition to them being a sponsor of the show, I also work with FTX. So we are here again,
1:07.2	back just a couple of weeks after our last EU crypto show, and I'm going to try to
1:11.8	unpack what's going on as dispassionately as possible. There are a lot of heated emotions right now
1:18.5	for good reason, so let's try to understand what's actually been happening. As we discussed before,
1:23.9	the Markets in Crypto Assets Directive, or MECA, has been in the work since 2019,
1:29.7	but it's recently had more momentum and more focus.
1:33.0	For the last couple of months, the crypto industry's attention was on an anti-proof-of-work
1:37.5	provision in the bill.
1:39.2	In February, there was a bit of a back-and-forth where first this anti-POWB provision was
1:43.5	removed, and then just before
1:45.0	an important last-minute vote in the Econ Committee of the EU Parliament, a version was added
1:49.7	back, which said, quote, crypto assets shall be subject to minimum environmental sustainability
1:54.7	standards with respect to their consensus mechanism used for validating transactions, before being
2:00.2	issued, offered, or admitted to trading in the union. Crypto, before being issued, offered, or admitted to
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Blockworks, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Blockworks and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.