While the European government is still working on a regulatory approach to the regulation of cryptocurrency, part of the body, namely the parliamentarians, before publishing new rules targeting crypto users with unverified identities.
The law that has just been passed is not only aimed at crypto specifically but at the act of money laundering or holding and trading digital assets anonymously. The announcement read, “new EU measures against money laundering and terrorist financing.”
Restrictions Given To Unverified Crypto Users
According to a press release, the European Parliament and other members of parliament in the Economic and Civil Liberties committee on March 28 voted for new anti-money laundering (AML) measures and terrorist financing regulations. Included in the new law is a €1000 limit for crypto users with unverified identities.
The press release notes:
Entities, such as banks, asset and crypto asset managers, real and virtual agents, and high-level professional football clubs, will be required to verify the identity of customers, what they own, and who controls the company. They must also assess the type of risk of money laundering and terrorist financing detailed in the activity sector, and submit the relevant information to the central registry.
Besides the $100 limit imposed, the EU parliament also pressed €7000 for cash payments for transactions in the category of unverified crypto users. The restrictions are part of the EU’s plans to reform AML regulations.
These restrictions are in conjunction with measures that restrict businesses from accepting large payments from anonymous sources.
According to Damien Carême, a French member of parliament who led the parliamentary negotiations on revamping the AML regulation, the law does not ban crypto payments but targets money laundering because the limit cap only applies to unregulated wallets and unverified users. Carême noted:
We absolutely do not prevent crypto transactions. Only when identification is not possible.
EU Parliament Launches New Anti-Money Laundering Agency
With 99 MPs voting in favor of the new plan and six abstentions, the EU created a new European Union Anti-Money Laundering Agency (AMLA), which is empowered with supervisory and investigative powers “to ensure compliance with AML/CFT requirements.”
AMLA is responsible for monitoring risks and threats inside and outside the EU. The agency will also be used to directly monitor some specific credit and financial institutions and classify them according to their level of risk.
According to the report, lawmakers sought to authorize the AMLA to mediate between national financial supervisors and also settle disputes. The AMLA will also receive whistleblower complaints and ensure stronger oversight by supervisors in the non-financial sector.
Speaking of finance, the global cryptocurrency market remains calm despite the US financial sector experiencing a crisis in recent weeks. Over the past 24 hours, the global crypto market is up 1.5% at $1.188 trillion at the time of writing.
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