EU Moves to Ban Anonymous Crypto Payments

The European Parliament's lead committees have approved a legislative move to ban anonymous crypto payments, sparking intense debate and marking a significant regulatory shift in the bloc's approach to digital currencies.

This comprehensive anti-money laundering package also imposes strict restrictions on cash transactions, reflecting a robust regulatory stance in the global financial landscape.

EU Committee approves:
🚫Prohibition of cash payments over €10,000
🆔Prohibition of anonymous cash payments over €3,000
₿ Prohibition of anonymous crypto payments to hosted wallets without any threshold

This means war on cash and gradual erosion of our financial freedom!… pic.twitter.com/gwznD4QZop

— Patrick Breyer #JoinMastodon (@echo_pbreyer) March 21, 2024

Under the new laws, anonymous cash payments in commercial transactions are limited to €3,000, with a complete ban on transactions exceeding €10,000. The legislation extends to digital financial transactions, requiring full traceability for cryptocurrency payments to hosted wallets, eliminating anonymity even for small transactions.

While EU bodies argue that these measures are crucial in combating money laundering and terrorism financing, critics, such as MEP Dr. Patrick Breyer, view them as excessive government control infringing on personal liberties. Breyer contends that banning anonymous payments disproportionately impacts citizens’ financial freedom without significantly curbing crime.

The crypto community has also raised concerns about the practical implications of the new laws, particularly regarding KYC requirements for transactions to hosted wallets. Hosted wallets without KYC may face restrictions, affecting anonymity and donations within the EU.

Critics question the enforceability of the legislation, given the decentralized and borderless nature of cryptocurrencies. They argue that attempts to regulate a global phenomenon through regional laws may be ineffective, as users could find ways to bypass regulations, undermining the EU’s regulatory efforts.

Author

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.