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FameEX Hot Topics | New European Law Limits Unverified Crypto Users to €1000 Transactions

2023-03-29 10:48:45

The European Parliament and lawmakers from the Economics and Civil Liberties committees recently voted in favor of new measures of anti-money laundering (AML) and terrorist financing regulation. One of the significant changes introduced is the €1000 limit imposed on crypto users with unverified identities. This new legislation will affect entities such as banks, crypto assets managers, real and virtual estate agents, and high-level professional football clubs. These entities will now be required to verify their customers' identity, what they own, and who controls their company. They will also need to establish detailed types of risk of money laundering and terrorist financing in their sector of activity and transmit relevant information to a central register.

Apart from the imposed €1000 limit, the EU parliament also pressed for a €7000 limit on cash payments for transactions in the same category of unverified crypto users. These limits are part of the EU's plan to revamp its AML regulations. The new plan was supported by 99 lawmakers, with six abstentions. As a result, the EU has created a new European Union Anti-Money Laundering Agency (AMLA), which is granted supervisory and investigative powers to ensure compliance with AML/CFT requirements. The AMLA is responsible for monitoring risks and threats within and outside the EU. The agency would also be used to directly supervise specific credit and financial institutions and classify them according to their risk level.
The MEPs are also considering granting the AMLA the authority to mediate between national financial supervisors and settling disputes. Moreover, the AMLA will receive whistleblower complaints and ensure stronger oversight of the supervisors in the non-financial sector.

These new measures aim to prevent money laundering and terrorist financing activities, which are becoming increasingly complex and evolving with technological advancements. As a result, the EU is continuously introducing new regulations and enhancing existing ones to keep up with the changing landscape of financial crime. Although the new laws will impact the crypto industry, they are a necessary step towards ensuring the integrity of the financial system. By requiring entities to verify their customers' identity and report suspicious activities, the EU is taking a proactive approach to combatting financial crime. The creation of the AMLA is a significant milestone in the EU's efforts to prevent money laundering and terrorist financing activities, and its supervisory and investigative powers will go a long way in achieving this goal.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.

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