EU Lawmakers Set Limits on Unverified Crypto Users
The European government is currently developing its approach to cryptocurrency regulation.
However, lawmakers recently announced a new rule targeting users with unverified identities who engage in anonymous transactions or hold digital assets to prevent money laundering and terrorist financing.
This new law applies to various entities, including banks, real estate agents, and crypto asset managers.
As part of the EU’s revamped anti-money laundering regulations, the lawmakers have imposed a €1,000 limit on unverified crypto users and a €7,000 limit on cash payments for the same category of users.
These limits are not intended to ban crypto transactions but to target money laundering. The limits come alongside measures that restrict businesses from accepting large payments from anonymous sources.
The European Parliament and other lawmakers also voted to create a new Anti-Money Laundering Agency for the EU (AMLA), with supervisory and investigative powers “to ensure compliance with AML/CFT requirements.”
The AMLA will monitor risks and threats within and outside the EU, and it will also receive whistleblower complaints and ensure stronger oversight of supervisors in the non-financial sector.
The French lawmaker leading the parliament’s negotiations on revamping its AML regulations clarified that the law does not aim to ban crypto payments but rather to target money laundering, as the limit cap only applies to unregulated wallets and unverified users.