I just spent the last few weeks on this and the regulators took a 'tech should conform to my understanding' approach.
It's horrible legislation, time consuming across a still-emerging field (talk about hindering progress..) and I'm not even part of the EU. I am tempted to just shut off my services to the EU until I redeploy everything as dapps and wipe my hands of this nonsense.
Let EU deal with blocking eth because it doesn't conform to the way they think technology should work.