EU Imposes New Rules for Anonymous Crypto Transactions

The Anti-Money Laundering and Countering the Financing of Terrorism package is expected to be confirmed in April’s plenary session.

European Union lawmakers have introduced draft legislation aimed at combating money laundering and terrorist financing.

The new bill would impose a 1,000 euro ($1,083) limit on anonymous cryptocurrency transfers.

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As detailed in a statement from the European Parliament on March 28th, the limit would be applied to cryptocurrency transfers where the customer’s identity cannot be determined.

Moreover, the rule would also apply to cash transactions that would be subject to a 7,000 euro ($7,585) cap.

It is worth noting that the new regulation was approved by the majority of EU lawmakers 99 voted in favor of the proposal, eight were against the bill, and six were abstentions.

The Anti-Money Laundering and Countering the Financing of Terrorism package is expected to be confirmed in April’s plenary session, with subsequent negotiations on the final version of the bill to follow.

The enforcement of these regulations will be the responsibility of the European Anti-Money Laundering Authority (AMLA), which was established in June 2022.

Co-rapporteur for the AMLA, Emil Radev, stressed the significance of the new authority collaborating closely with national supervisors while directly supervising high-risk crypto service providers and international financial sector companies.

The new package highlights the necessity for enhanced transparency and compliance, particularly among crypto asset managers. The document reads:

Entities such as banks, asset and crypto asset managers, real and virtual estate agents, and high-level professional football clubs will be required to verify their customers’ identity, what they own, and who controls the company.

Additionally, the bill indicated that companies must define specific risks associated with money laundering and terrorist financing within their business area and submit relevant information to a centralized registry.

While the EU is considering the laws on anonymous cryptocurrency transfers, the Markets in Crypto-Assets (MiCA) Regulation is still awaiting its turn. During the Paris Blockchain Week 2023, industry experts and regulators shared their opinions on EU MiCA regulation.

Gile K. - Crypto Analyst

by Gile K. – Crypto Analyst, BitDegree

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