European Parliament to impose a limit of $1,000 on unverified crypto payments
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Loading... - Petar Dedic
- 28 Mar 2023
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As lawmakers in Europe work to finalize their approach towards regulating cryptocurrencies, the ability to anonymously hold and transact digital assets has just been diminished as the European Parliament has voted in favor of imposing limits on payments by unverified crypto users.
According to a press release posted by the Parliament, lawmakers on the Economics and Civil Liberties committees voted on Tuesday in favor of the new anti-money laundering (AML) and terrorist financing regulation, which seeks to impose a $1,000 cap on transactions coming from unverified crypto wallets.
“Entities, such as banks, assets and crypto assets 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,” the release said. “They will also have to establish detailed types of risk of money laundering and terrorist financing in their sector of activity, and transmit the relevant information to a central register.”
The limit is part of the EU’s overhaul of its AML regulations. The plans were considered alongside other measures designed to restrict businesses from accepting large cash payments from anonymous sources. As part of the overhaul, the Parliament also voted to create a new European Union Anti-Money Laundering Agency, the AMLA, which has been granted supervisory and investigative powers “to ensure compliance with AML/CFT requirements.”
The AMLA will be tasked with monitoring risks and threats within and outside the EU and will directly supervise certain credit and financial institutions and classify them according to their risk level. MEPs also want to give AMLA the powers to mediate between national financial supervisors and settle disputes, ensure stronger oversight of the supervisors in the non-financial sector and receive whistleblower complaints. A total of 99 lawmakers voted in favor of the new plan, while there were six abstentions. Read More…
