The European Parliament has approved new draft legislation that would impose a EUR 1,000 (USD 1,083) cap on anonymous cryptocurrency transfers to combat money laundering and terrorist financing.
The legislation is part of a broader AML and CFT package and received overwhelming support from lawmakers, with 99 votes in favor, eight against, and six abstentions. The limit would apply to crypto asset transfers when a customer cannot be identified, and cash transactions would also be capped at EUR 7,000 euros (USD 7,585).
Entities such as banks, crypto asset managers, real estate agents, high-level professional football clubs, and others will be required to verify their customers’ identities and relay relevant information to a centralized registry. The legislation will also require greater transparency and compliance, particularly from crypto asset managers.
After the confirmation of the plenary session in April, negotiations on the final shape of the bills will commence. The newly formed European AML Authority (AMLA) will be responsible for enforcing the rules.
The legislation comes as part of a broader push by European lawmakers to regulate the cryptocurrency industry, with the final vote on the European Union’s Markets in Crypto-Assets regulation deferred to April 2023.
The European Banking Federation has also released a paper proposing a three-tiered model for the digital euro, with the European Central Bank’s role and two industry levels. The digital euro’s development is part of a broader push towards a digital money ecosystem.
