DENMARK TO ABOUT TO BAN BITCOIN WALLETS
We have finally reached this point.
In the latest DeFi guidance of Danish FSA, the regulator goes too far: The guidance tries to capture everything in crypto regulation, including your Bitcoin wallet, using "interface" argument. DFSA says that interface providers must be regulated, including mobile app developers. You do not need to think about it too hard to realised that everything is an interface: your computer, your web browser, your Bitcoin wallet, Uniswap website and so on.
This is against the spirit and guidance MiCA. The "interfaces and frontends" must be regulated comes from the FAFT lobbying "how to squeeze crypto out of existence" - which in turn was directly from Gensler and co. While the intentions of DFSA might be good, this kind of overregulation does not help anyone. Trying to force everyone to be a regulated intermediate in a peer-to-peer world sounds cool, but you might as well be honest with your talking points and say "In reality we want to ban all cryptocurrencies, we are just sneaky about it" because this is the outcome.
What this means is that no one can offer Bitcoin wallets, DEX interfaces or anything that touches a token to Danish anymore because they would need to be regulated in Denmark.
dfsa.dk/Media/63854909…
We have finally reached this point.
In the latest DeFi guidance of Danish FSA, the regulator goes too far: The guidance tries to capture everything in crypto regulation, including your Bitcoin wallet, using "interface" argument. DFSA says that interface providers must be regulated, including mobile app developers. You do not need to think about it too hard to realised that everything is an interface: your computer, your web browser, your Bitcoin wallet, Uniswap website and so on.
This is against the spirit and guidance MiCA. The "interfaces and frontends" must be regulated comes from the FAFT lobbying "how to squeeze crypto out of existence" - which in turn was directly from Gensler and co. While the intentions of DFSA might be good, this kind of overregulation does not help anyone. Trying to force everyone to be a regulated intermediate in a peer-to-peer world sounds cool, but you might as well be honest with your talking points and say "In reality we want to ban all cryptocurrencies, we are just sneaky about it" because this is the outcome.
What this means is that no one can offer Bitcoin wallets, DEX interfaces or anything that touches a token to Danish anymore because they would need to be regulated in Denmark.
dfsa.dk/Media/63854909…
2/ Banning peer-to-peer or "unhosted wallets" was earlier proposed by some far-left and far-right MEPs during the preparation of MiCA.
There are clear political forces in the EU that want to copy the Chinese model.
There are clear political forces in the EU that want to copy the Chinese model.
https://x.com/moo9000/status/1491386097527844866
3/ This was also proposed earlier in Estonia:
The regulator had to make a hasty correction and backtrack changes after the public controversy:
crypto.news/estonian-plans…
The regulator had to make a hasty correction and backtrack changes after the public controversy:
https://x.com/moo9000/status/1476827340940455939
crypto.news/estonian-plans…
4/ The FAFT interface argument that are bought in by national regulators. FATF itself is opaque, black-box organisation, without a political mandate: FATF decision makers are not publicly selected or responsible for anyone.
https://x.com/moo9000/status/1775663875637088414
5/ Notably "regulating interfaces" is not a thing in the US. Coinbase Wallet (self-custodial) was excluded from the lawsuit against the SEC, against the wishes of Mr Gensler.
blockworks.co/news/judge-rul…
blockworks.co/news/judge-rul…
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