What is a "Cryptocurrency Wallet"? if you run a script on your computer, you can generate a keypair that will allow you to publish a public address people can send messages on the network to. This is no different to SSL or GPG; does that action constitute a "wallet"?
What the EU is trying to assert is that the mere possession of information that you don't want to divulge (block of text) is "regulated activity". This strikes at the very heart of privacy and is absolutely insupportable and absurd, violating many principle and EU citizen rights.
It defacto means that a nemonic; a string of words that can be turned back in to a private key, is a "regulated activity". There is no way, in any democratic society that memorizing or writing down a string of 15 random words can be regulated. It is unworkable and unethical.
There is no chance that any law the EU is proposing will work. If it were possible to simply ban types of software, BitTorrent would not exist now. How do these people think they can control Bitcoin if they can't control BitTorrent? This is leaving aside the "by what right" part.
The approach the EU is taking is the polar opposite of the correct one. Regulation and prohibition do not work; only embracing new thinking works. These people are living in a parallel universe where the BitLicense was never seen to be a failure.
Had they looked at New York, they would have seen that no one is incorporating there, but everyone is moving to Malta, Lichtenstein and other jurisdictions where they can operate freely. This is a no brainer that sadly, requires a brain to understand. Amazingly, profoundly DUMB!
All of this thinking is the bastard child of the misdefinition of Bitcoin. When you superimpose a definition on BTC, "Crytpcurrency", "Digital Token", "Money" or some other shorthand, and build thinking on those wrong words, you open yourself up to nothing but error upon error.
None of the rules, regulations and legislation ever references what Bitcoin ACTUALLY is, because if they did, every database company in the EU would be impacted by the new regulations. Bitcoin is a database maintained in a group, with a limited amount of space. That's what it IS.
This is the reason why countries with written Constitutions and guaranteed rights cant regulate Bitcoin. It is text just like Oliver Twist or any other book. If you have rights, then you can have Bitcoin any way you want it, without restriction. hackernoon.com/why-america-ca…
And remember too, that software clients (wallets) are made out of text also. The famous Zimmerman case established that software is a First Amendment protected right. Any country with protected rights cannot touch software developer's work, or their right to disseminate it.
Any jurisdiction on earth that protects citizens rights will be the centre of Bitcoin business. They will attract all the entrepreneurs, and the businesses they start will pay billions in taxes in that country, as the BTC of every user on Earth transits. hackernoon.com/our-submission…
The EU, being run by essentially pure anti-Capitalist Socialists, does not want that centre to emerge inside its borders. That's OK. Silicon Valley does just fine being where it is, and when the EU calls Zukerberg to testify, he simply says, "Nah". That is the future for the EU!
The "Facebook of Bitcoin" is coming, MARK MY WORDS, and when it does, it won't be based in New York or the EU, but it WILL EXIST and it will not be answerable to the EU aparatchicks or the New York mafiosae. This is _INEVITABLE_ and there is nothing you can do to stop it. PERIOD.
That is completely ridiculous. First of all, "I would say" doesn't make something true, and what you're asserting is that Last Pass is a "wallet" because it manages lots of different keys. This is the sort of absurd, irrational thinking that causes all the problems!
Your opinion should not be the basis of law, or the basis of everyone being forced to call a piece of text a wallet. Your personal conventions that you use to describe what you do are personal to YOU and NOT UNIVERSAL and should NEVER be mandatory. That's the WHOLE POINT.