Anonymous cryptocurrency wallets become illegal in the EU

Cryptocurrency payments using unidentified self-custodial crypto wallets have become illegal in the European Union (EU). The recent measure is part of a set of new anti-money laundering (AML) laws.

On March 19, the majority of the European Union Parliament committee decided on the ban, according to a recent publication released by Patrick Breyer, member of the European Parliament for Deutsch Piraten Partei.

🇩🇪 Decided by the EU Committee:
🚫Prohibition of cash payments over €10,000
🆔Ban on anonymous cash payments over €3,000
₿ Ban on anonymous crypto payments to hosted wallets, even for small amounts

This means war on cash and creeping financial incapacitation –… pic.twitter.com/mI7AlDslqY

— Patrick Breyer #JoinMastodon (@echo_pbreyer) March 21, 2024

The new legislation highlights the prohibition of some limits on cash payments, as well as any crypto payments that are anonymous. According to the law, any cash payment in excess of 10,000 euros and anonymous cash payments in an amount exceeding 3,000 euros will be considered illegal.

The measure will be specific to payments that will be made in cryptocurrencies to unidentified wallets that are operated through providers (hosted wallets), in addition to including self-custody wallets that are provided by mobile, desktop or browser applications.

It is worth remembering that, in January, given the developments and growth of the cryptocurrency industry, the European Union (EU) evolved in its regulations. Recently, the EU signed an agreement to impose stricter rules on companies in the sector. The new rules are part of the regulatory framework that is contrary to money laundering.

With this, the standards are intended to act in the fight against money laundering, in addition to establishing standardized regulations in member states.

“The Council and Parliament reached a provisional agreement on parts of the anti-money laundering package that aims to protect EU citizens and the EU financial system against money laundering and terrorist financing,” the Authority said. in a statement.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.