Lawmakers of the European government have released a new rule targeting cryptocurrency users with unverified identities. As the government continues to work on its regulatory policies toward the crypto space, this new rule also seeks to ensure compliance with existing regulations.
The recently enacted legislation was specially geared toward curbing money laundering and the anonymous possession and exchange of digital assets.
Overview of the New Restrictions
On March 28, the European Parliament along with other lawmakers at the Economics and Civil Liberties committees voted to pass new anti-money laundering (AML) and terrorist financing regulations. The new law includes an imposed limit of €1000 on cryptocurrency users with unverified identities. This decision was officially unveiled through a press release.
Furthermore, the EU Parliament has also set a €7000 limit on cash payments for transactions involving unverified crypto users, in addition to the already imposed $1000 limit.
French lawmaker Damien Carême, who is in charge of the negotiations on revamping the nation’s Anti-Money Laundering regulations, clarifies that the new law is not intended to ban crypto payments but rather to target money laundering.
EU Parliament to Combat Money Laundering
Ninety-nine EU lawmakers voted in support of the establishment of the European Union Anti-Money Laundering Agency (AMLA), with six abstentions. AMLA has been granted the authority to supervise and conduct investigations regarding Anti-Money Laundering /Counter-Terrorism Financing (AML/CFT) requirements.
The European Union’s Anti-Money Laundering Authority (AMLA) is entrusted with the responsibility of monitoring potential risks and threats both internally and externally. Additionally, AMLA is mandated to oversee certain credit and financial institutions and evaluate their risk level. Furthermore, AMLA will be responsible for receiving all the whistleblower reports and reinforcing the oversight of regulators of the non-financial sector.