Cryptocurrency users beware: new EU anti-money laundering law clarified.
The European Union Parliament has banned the use of unknown #cryptocurrency wallets in intra-regional transactions as part of a wider effort to combat money laundering.
The ban applies to anonymous money transactions of 3,000 or more, as well as self-stored wallets on various platforms.
Opponents of the ban argue that it has a disproportionate impact on law-abiding citizens and could hamper financial privacy.
The European Union Parliament has taken the important step of outlawing unidentified cryptocurrency wallets for making payments across the region.
According to a recent social media post by MEP Patrick Bloyer, the ban was approved by a majority of the parliament's steering committee on March 19. The move is part of the EU's wider anti-money laundering (AML) legislation.
The new rules ban all anonymous crypto payments and cash transactions above a certain limit. Specifically, cash payments over 10,000 and anonymous cash transactions over 3,000 will fall under the ban. The ban also applies to self-designed wallets in mobile, desktop or browser applications.
The law is due to come into force in three years, although there is speculation that it could come into force sooner.
Nevertheless, the new law will change the way Europeans view digital currencies. The strict stance on anonymity has also raised concerns about user privacy and financial accessibility. In addition, the rules could create significant barriers to innovation and hinder the spread of #cryptocurrencies in the region.
Speaking against the ban in Parliament, Mr. Breuer argued that the ban was not a criminal offense and could affect law-abiding citizens. He emphasized that anonymous payments serve legitimate purposes.
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