EU lawmakers are pushing for stricter rules on anonymous crypto transfers
European Union lawmakers have passed new draft legislation that would impose a 1,000 euro ($1,083) cap on anonymous transfers of crypto assets in a bid to combat money laundering and terrorist financing.
According to a European Parliament statement published on March 28, the limit will apply to the transfer of crypto assets in cases where a customer cannot be identified. Cash transactions will also be limited to 7,000 euros ($7,585).
The AML/CTF package is to be confirmed in a plenary session in April. Negotiations will then start on the final form of the bills, it says.
It was noted that the European Anti-Money Laundering Authority (AMLA), which was formed in June 2022, would eventually enforce the rules.
“For us, it is important that the new authority cooperates very closely with national supervisory authorities and that it directly supervises the most risky crypto-asset service providers and companies in the financial sector operating in several member states,” said Emil Radev, co-mayor of the organization. AMLA.
The text related to the use of anonymous instruments, including crypto-assets, was overwhelmingly approved by lawmakers – “with 99 votes to 8 and 6 abstentions.”
The recently adopted texts indicate that the introduction of the bill will require a greater degree of transparency and compliance, especially from crypto asset managers. It noted:
“Entities, such as banks, asset and crypto-asset managers, real estate and virtual real estate brokers, and high-level professional football clubs, will be required to verify their customers’ identities, what they own and who controls the company.”
It was also noted that these industries will have to establish specific types of risk related to money laundering and terrorist financing within their business area and forward this relevant information to a centralized register.
Related: The European Commission to ensure “healthy competition” in the metaverse
This comes after the European Banking Federation (EBF) released a paper on March 28 outlining its vision for the future digital money ecosystem, and in particular the retail digital euro.
The EBF proposed a three-part model for the digital euro, including a role in the European Central Bank and two industry levels – the first interacting with the single euro payment area and an “industry level B” which would later be developed and operated by the private sector.
In related news, the final vote on the EU’s set of crypto rules, known as the Markets in Crypto Assets (MiCA) regulation, was recently postponed until April 2023.
This is not the first time European lawmakers have rescheduled the procedure, having pushed it back from November 2022 to February 2023.
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