EU lawmakers want anonymous crypto transactions restricted

To tackle money laundering and terrorism funding, European Union (EU) legislators endorsed a new draft regulation capping anonymous cryptographic transactions at €1,000 ($1,083).

According to a statement released by the European Parliament on March 28, the limit would apply to the transfer of crypto assets when a consumer cannot be recognized. In addition, cash transactions will be limited to 7,000 euros ($7,585).

In April, the Anti-Money Laundering and Countering the Funding of Terrorism package will be approved during a plenary session. It was said that talks on the final form of the legislation would then commence.

The laws will eventually be enforced by the European Anti-Money Laundering Authority (AMLA), which will be established in June 2022.

Emil Radev, co-rapporteur for the AMLA, emphasized the need for the new body to cooperate closely with national supervisors and directly supervise the riskiest crypto asset service providers and financial businesses operating in multiple member states.

With 99 votes in favor, eight against, and six abstentions, MPs passed the language about anonymous instruments, including crypto assets, by an overwhelming margin.

The newly accepted wording implies that the bill’s introduction would require increased transparency and compliance, especially on the part of crypto asset managers. It stated:

“Entities, such as banks, assets and crypto assets managers, real and virtual estate agents and high-level professional football clubs, will be required to verify their customers’ identity, what they own and who controls the company.”

In addition, it was emphasized that the industries would need to identify particular money laundering and terrorism funding threats inside their respective business sectors and communicate this information to a central register.

The European Banking Federation (EBF) published a document on March 28 describing its vision for the future digital money ecosystem and the retail digital euro in particular.

The EBF suggested a three-tiered concept for the digital euro, including the function of the European Central Bank (ECB) and two industry levels. The ECB will interface with the Single Euro Payments Area, with “Industry Level B” established and maintained by the private sector.

In related developments, the final vote on the Markets in Crypto-Assets legislation has been postponed until April 2023.

This is not the first time that European legislators have postponed the procedure, as it was originally delayed from November 2022 to February 2023.