The EU approved a ban on anonymous crypto transactions, regardless of the amount
The European Parliament has lifted the €1,000 (or $1,080) check limit on cryptocurrency transactions made from personal crypto wallets, in accordance with new anti-money laundering laws.
According to the Anti-Money Laundering Regulation (AMLR), adopted on March 19 By the European Union Committees on Economic and Monetary Affairs, as well as on Civil Liberties, Justice and Home Affairs, which was previously agreed upon by the European Council and Parliament, this limit was abolished in January.
According to the Anti-Money Laundering Regulation (AMLR), adopted on March 19 By the European Union Committees on Economic and Monetary Affairs, as well as on Civil Liberties, Justice and Home Affairs, which was previously agreed upon by the European Council and Parliament, this limit was abolished in January.
The provision that regulated the €1,000 limit for businesses using their own crypto wallets for transactions was removed, along with an initiative to introduce identity checks for offline wallets accepting funds. That is, crypto exchanges in the EU will require KYC for their clients to complete any transaction.
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Crypto-asset service providers must implement mitigation measures commensurate with the risks identified. These measures must include one or more of the following: taking measures to identify and verify the identity of the sender or recipient of a transfer made from or to a non-custodial address...
This legislation works in conjunction with the Markets for Crypto Assets Acts (MiCA), which focus on cryptocurrencies, and other regulations to strengthen existing prohibitions on service providers crypto assets (CASP) to provide accounts to anonymous users or to use privacy coins such as Monero, which hide transaction information.
Under the new laws, crypto asset service providers (CASPs) are also required to apply “risk mitigation measures” to transfers between their platform and offline wallets where users store their private keys. This is, at a minimum, a verification of the identity of the owner of the exchange wallet to which funds from the offline storage wallet were sent.
Under the new laws, crypto asset service providers (CASPs) are also required to apply “risk mitigation measures” to transfers between their platform and offline wallets where users store their private keys. This is, at a minimum, a verification of the identity of the owner of the exchange wallet to which funds from the offline storage wallet were sent.
New laws have also limited cash payouts to $10,800 (or €10,000), with EU Member States free to set lower limits. Additionally, anonymous cash payments over $3,240 (or €3,000) are now prohibited.
The Anti-Money Laundering Regulations (AMLR) are expected to become fully operational in three years, around 2027, once all necessary approvals have been received.
Opinion of the crypto community
In a statement on March 21, MEP Patrick Breyer described the new laws as a "war on cash":
Source: Patrick Breyer's X-account
Breyer expressed his dissatisfaction with the bill, arguing that it puts economic independence and financial privacy at risk. He expressed the view that the ability to carry out anonymous transactions is a fundamental right. Most crypto enthusiasts agree with his statement.
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Banning anonymous payments would have a minimal impact on criminals at best, but would deprive innocent citizens of financial freedom. The medications or sex toys I buy are my own business. Dissidents ... are increasingly relying on anonymous donations in virtual currencies around the world
The crypto community's reaction to EU regulatory measures has been mixed. Some believe the new laws are needed to combat crime, while others fear they could restrict privacy and economic freedom.
Former director of Binance in Asia and Eastern Europe, Gleb Kostarev, described the decision of the European Parliament as “a huge step towards restricting the freedoms of cryptocurrency users”.
Former director of Binance in Asia and Eastern Europe, Gleb Kostarev, described the decision of the European Parliament as “a huge step towards restricting the freedoms of cryptocurrency users”.
AML Crypto opinion
We at AML Crypto find it difficult to give a definite and one-sided opinion on this issue. We certainly recognize the importance of combating financial crime and actively support efforts to prevent the use of cryptocurrencies for illegal activities. However, we also believe that the right to anonymity in financial transactions is an important aspect of personal privacy and user freedom. Therefore, decisions from the EU should not be spontaneous and discussed in a narrow circle of legislators. We are confident that such initiatives should be developed taking into account the opinions of various representatives of the cryptocurrency market.
We also remind you that you can check your crypto wallet for purity, perform an AML address check, track a transaction - this and not only you can do in our solution Btrace. Free AML wallet verification for every new user.
We also remind you that you can check your crypto wallet for purity, perform an AML address check, track a transaction - this and not only you can do in our solution Btrace. Free AML wallet verification for every new user.
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