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FameEX Hot Topics | Unverified Crypto Users Face €1000 Limit Under New European Law

2023-03-29 10:48:45

On March 28, the European Parliament, along with lawmakers from the Economics and Civil Liberties committees, voted in favor of new measures of anti-money laundering (AML) and terrorist financing regulation. Among the new laws is a limit of €1000 on crypto users with unverified identities.
This new legislation affects entities such as banks, assets and crypto assets managers, real and virtual estate agents, and high-level professional football clubs. They will be required to verify their customers' identity, what they own, and who controls the company. 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.
In addition to 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 plan to revamp its AML regulations.

The new plan was supported by 99 lawmakers, with six abstentions. The EU has created a new European Union Anti-Money Laundering Agency (AMLA), which is permitted 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 some specific credit and financial institutions and classify them according to their risk level. According to the report, the MEPs are looking to grant the AMLA the authority to mediate between national financial supervisors as well as the settlement of disputes. The AMLA will also receive whistleblower complaints and ensure stronger oversight of the supervisors in the non-financial sector.

The EU's new measures are aimed at preventing money laundering and terrorist financing activities. These activities have become increasingly complex and are evolving with technological advancements. As a result, the EU is continuously implementing new regulations and enhancing existing ones to keep up with the changing landscape of financial crime. While the new laws will undoubtedly have an impact on 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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