#askNostr
Any European lawyers out there? Can anyone point me to the exact law or regulation in Europe that makes it impossible to run a custodial lightning service as part of an app or for a circular economy?
I'm just trying to go deeper on what the ACTUAL requirements are if you want to be fully legal and run a custodial lightning node with something like LNHub.
Please, no replies just yelling about how the regs are bullshit. I 1000% agree, but that's not what I'm looking for here.
Wait, it's illegal? o.o
I have ran mine mainly through tor because *i can*... Thank you for the pointer.
Does tor fall under EU jurisdiction? :-)
My uninformed take......As a custodial wallet provider you will be considered as a crypto asset service provider and therefore subject to regulation under Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (MiCA).
Full text is here but it's very long and I'm truly sorry not to be able to highlight any specific requirement for your question. Another guess from me would be that there are a few different ways that the travel rule, AML/KYC regulations and wider financial regulations etc, that are being applied to crypto through this legislation, would be relevant to any custodial lightning wallet provider wanting to operate legally in Europe. š«”
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023R1114
Its called MICA.
If you exchange or facilitate digital asset transfers and exchange for others you are subject to registration.
