Still, the parliament is pushing to limit the amount merchants are allowed to accept from self-hosted wallets without involving a licensed crypto firm at €1,000. A breach would result in penalties.

Following Hamas’ attack on Israel on October 7, lawmakers rushed to stop terrorist organisations from using crypto to finance their operations, especially in light of reports that the Palestinian group was using digital assets to help fund its militants. In November, the European Parliament proposed adding extra due diligence measures for firms handling crypto transactions under €1,000. Other forms of payments wouldn’t need those extra measures. The reasoning was that terror groups often use low value transactions to conceal their funding practices.