EU Lawmakers Approve Draft Legislation to Cap Anonymous Crypto Transfers and Strengthen AML Measures
EU lawmakers have adopted draft legislation to limit anonymous crypto transfers to 1,000 euros and cash transactions to 7,000 euros in order to combat money laundering and terrorist financing, while the final vote on the Markets in Crypto-Assets regulation has been deferred to April 2023.
European Union lawmakers have adopted draft legislation to impose a 1,000 euro ($1,083) cap on anonymous crypto transfers to combat money laundering and terrorist financing. The limit would apply when a customer can't be identified, and cash transactions will be capped at 7,000 euros ($7,585). The Anti-Money Laundering and Countering the Financing of Terrorism package is set to be confirmed in a plenary session in April, after which negotiations on the final form of the bills will begin.
The European Anti-Money Laundering Authority (AMLA) will enforce the rules. Emil Radev, co-rapporteur for the AMLA, emphasized the importance of the new authority's close cooperation with national supervisors and its direct supervision of the riskiest crypto asset service providers and companies in the financial sector that operate in several member states.
Lawmakers overwhelmingly approved the text relating to anonymous instruments, including crypto assets, with 99 votes in favor, eight against, and six abstentions. The newly adopted text indicates that the bill will require greater transparency and compliance, particularly from crypto asset managers. Banks, assets and crypto asset managers, real and virtual estate agents, and high-level professional football clubs will be required to verify their customers' identity, what they own, and who controls the company.
Industries will also need to establish specific risks associated with money laundering and terrorist financing within their business area and relay this relevant information to a centralized registry.
The European Banking Federation (EBF) released a paper detailing its vision for the future digital money ecosystem and the retail digital euro. The EBF proposed a three-tiered model for the digital euro, with the European Central Bank (ECB) interacting with the Single Euro Payments Area and an "Industry Level B" developed and operated by the private sector.
The final vote on the European Union's set of crypto rules — the Markets in Crypto-Assets regulation — was recently deferred to April 2023, marking the latest in a series of delays.
