REGULATION

EU passes strict anti-money laundering law, banning anonymous crypto payments to custodial wallets

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EU passes strict anti-money laundering law, banning anonymous crypto payments to custodial wallets

The European Parliament has approved strict new anti-money laundering laws: anonymous cash payments in commercial transactions will be prohibited over 3,000 euros; cash payments over 10,000 euros will be banned; and anonymous cryptocurrency payments to custodial wallets will be completely prohibited, even for small amounts.

New Anti-Money Laundering Law Restricts Cash Transactions and Anonymous Cryptocurrency Payments

According to a tweet by Patrick Breyer, a member of the German Pirate Party (Piratenpartei Deutschland) in the European Parliament, the EU Parliament's Committee on Economic and Monetary Affairs approved a new anti-money laundering law on March 19. Breyer was one of only two members who voted against it.

The new anti-money laundering legislation imposes restrictions on cash transactions and anonymous cryptocurrency payments. Under the new regulations:

  • Anonymous cash payments over 3,000 euros will be prohibited in commercial transactions
  • Cash payments over 10,000 euros will be entirely banned in commercial transactions
  • Anonymous cryptocurrency payments to custodial wallets, even for small amounts, will be prohibited

This ban specifically applies to third-party service providers such as centralized exchanges offering custodial cryptocurrency wallets.

Depriving Innocent Citizens of Financial Freedom

Breyer expressed his opposition:

Banning anonymous payments has little impact on crime but deprives innocent citizens of financial freedom. If every payment is permanently recorded and stored, it poses chilling risks such as hacking attacks, unauthorized investigations, and government surveillance of every purchase and donation.

Breyer believes that a way must be found to bring the best features of cash into the digital future! People should have the right to pay and donate online with cryptocurrencies, and their payment behavior should not be recorded without cause. Compared to completely anonymous cash, cryptocurrency transactions can be traced through the blockchain, especially Bitcoin.

This legislation is expected to be fully implemented within three years of coming into effect.