EU Bans Anonymous Cryptocurrency Transfers Over 1,000 Euros

Key Points:

• The European Union is expected to vote on March 28 on a new anti-money laundering scheme that bans anonymous self-hosted wallets from transferring large amounts of crypto assets.
• Traders will be prohibited from making or accepting anonymous cryptocurrency transfers over 1,000 euros ($1,080).
• For businesses, the law also banned receipt of more than 7,000 euros in cash and established a new EU anti-money laundering agency, AMLA.

The EU is expected to vote on March 28 on a new anti-money-laundering plan that bans anonymous self-hosted wallets from transferring large amounts of crypto assets.

The Economics and Civil Liberties Committees of the European Parliament will vote on new anti-money laundering (AML) plans on Tuesday after months of debate on how to prevent the use of cryptocurrencies, non-fungible tokens (NFT), and the metaverse for financial crime.

The law also bans businesses from accepting more than 7,000 euros in cash and establishes a new EU anti-money laundering agency, AMLA.

Under the current proposals, traders would be prohibited from making or accepting anonymous electronic money transfers of more than 1,000 euros ($1,080), and transactions would be allowed if the customer’s identity could be verified or if relevant concerning regulated cryptocurrency providers. In addition, large cryptocurrency transfers between individuals, such as friends, are still allowed.

The proposals would need to be approved by the European Council, which speaks for the member states of the bloc, and the European Union Parliament to become law. The Council attempted to prohibit banks and cryptocurrency companies from trading in privacy-enhancing coins last year, putting coins like zcash, monero, and dash on par with bearer shares and other anonymous financial instruments.

According to the parliament’s plans, any foreign provider who is not registered or licensed anywhere would not be permitted to have a correspondent relationship with any EU cryptocurrency providers. Decentralized autonomous organizations (DAOs), to the extent they are managed by an identified person, and NFT platforms are also subject to the money laundering regulations under the recommendations.

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