The European Parliament approved a new anti-money laundering law, in particular prohibiting anonymous transactions from custodial wallets. This was stated by Member of the European Parliament Patrick Breuer.
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Details
The ban applies to:
- cash payments in the amount of more than 10,000 euros; anonymous cash payments for amounts over 3,000 euros; anonymous cryptocurrency payments through custodial wallets without any threshold.
Breuer noted that the majority of the European Parliament's main committees approved new anti-money laundering laws on March 19.
According to recent changes in legislation, cryptocurrency payments made through unidentified crypto wallets are effectively illegal in the European Union.
The document states that the ban does not apply to hardware and software suppliers or non-custodial wallet providers, since they do not have access or control over crypto assets.
When the ban starts working
The new legislation is expected to be fully operational within three years of its entry into force. However, Irish law firm Dillon Eustace believes the legislation will be implemented sooner. Cointelegraph reports this.
It should be noted that Breuer is one of two members of the European Parliament who voted against the ban on anonymous cryptocurrency payments. Gunnar Beck of the Alternative for Germany party also voted against the ban.
In a press release after leading committees approved the law, Breuer explained why he opposed the ban.
According to Breyer, the new law threatens economic independence and financial privacy. He said he considers the ability to make anonymous transactions a fundamental right.
The crypto community has received mixed reactions to the EU's regulatory measures. Some believe new anti-money laundering laws are needed, while others fear they could violate privacy and restrict economic activity.
