EU Lawmakers Approve €1,000 Limit on Anonymous Crypto Transactions
European Union (EU) lawmakers have voted in favor of imposing a €1,000 limit on cryptocurrency transactions where the customer cannot be identified. The European Parliament emphasized that 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' identities, assets, and company control.
On Tuesday, members of the European Parliament (MEP) from the Economic and Monetary Affairs Committee (ECON) and the Civil Liberties, Justice and Home Affairs Committee (LIBE) adopted their position on three pieces of draft legislation related to the EU Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) policy.
One of the three draft legislations was the "single rulebook" regulation, which aims to harmonize financial regulation across the EU. It was adopted with 99 votes to 8 and 6 abstentions, according to an announcement by the European Parliament. This regulation covers provisions such as customer due diligence, transparency of beneficial owners, and the use of anonymous instruments like crypto-assets, along with new entities like crowdfunding platforms.
The European Parliament detailed that to restrict transactions in cash and crypto-assets, MEPs wish to cap payments that can be accepted by those providing goods or services. They have set limits of up to €7,000 for cash payments and €1,000 for crypto-asset transfers, where the customer cannot be identified.
European Parliament Member Aurore Lalucq explained on Twitter that the new legislation specifically impacts cryptocurrency trading platforms and non-fungible tokens (NFTs). She highlighted that NFTs, previously excluded from the new Market in Crypto-assets Regulation (MiCA), will now be subject to anti-money laundering rules, and NFT platforms must comply with these legal obligations. Lalucq added that the European Anti-Money Laundering Authority (AMLA) will have the power to establish a list of high-risk platforms based outside the EU.
Lalucq also mphasized that due diligence procedures will be implemented for transactions made with unhosted wallets. Purchases over €1,000 will only be authorized if the owner or beneficiary can be identified. Additionally, relationships with unregistered or unlicensed platforms and entities will be prohibited, and AMLA will create a list of such entities.
