EU Decision-Makers Kick Off Negotiations On Controversial 'Unhosted Wallets' Regulation

cryptonews.com:

As the members of the European Parliament have launched the final round of negotiations on the controversial Transfer of Funds Regulation (TFR) today, the crypto industry hopes to impact the legislative proposal’s wording through a lobbying campaign aimed at the European Union’s lawmakers.

The legislation could put many crypto exchanges in jeopardy in the European Union, paving the way for a crackdown on so-called 'unhosted wallets' -- the term institutions use to refer to regular wallets -- a construct that bears little connection to the reality of day-to-day operations of such exchanges. 

At this stage of the legislative process, informal tripartite discussions, also known as trilogues, could end with a provisional agreement on the draft legislation by the European Union institutions. A potential agreement would be informal, and it would need to be formally approved by each of the three institutions: the Parliament, the Council of the European Union, and the European Commission.

Patrick Hansen, Head of Strategy and Business Development at Unstoppable Finance, tweeted that, 

“The negotiations normally last for a couple of months and the most controversial topics are usually addressed towards the end. The EU's goal is to reach an agreement on the TFR by early summer.”

Some of the most contentious issues that divide the European Parliament and the Council of the European Union, which includes relevant ministers from the bloc’s 27 member states, are related to the verification of 'unhosted wallets’, but also the reporting requirement for transfers of more than EUR 1,000 (USD 1,050) received from such wallets, Hansen said.

“Here again the Council is not 100% aligned with the demand of the EU Parliament,” he tweeted.

Moreover,