A majority of members of the European Parliament's main committee have approved a ban on anonymous cryptocurrency transactions through hosted crypto wallets as part of the EU's enhanced fight against money laundering (AML) and terrorist financing.
The new AML/CFT law, approved on March 19, places restrictions on cash transactions and anonymous #cryptocurrency payments. Under the new rules, anonymous cash payments over 3,000 are prohibited in business-to-business transactions, and cash payments over 10,000 are completely prohibited in business-to-business transactions.
The European Parliament's ban on anonymous cryptocurrency transactions refers specifically to hosted or stored cryptocurrency wallets provided by third-party service providers such as centralized exchanges.
One of the two MEPs who voted against the ban, MEP Patrick Bloyer (German Pirate Party), argues that the law would jeopardize economic independence and financial privacy. Bloyer believes that the ability to trade anonymously is a fundamental right and that a ban would have a negligible impact on crime, but would deprive essentially innocent citizens of financial freedom.
With the phasing out of cash, negative interest rates and the possibility of currency flipping at any moment, blocking cards is a threat. Dependence on banks is becoming frighteningly high. This financial disenfranchisement must be stopped," Breuer said in a press release (Google translation from German).
Breuer also expressed concern about the possible consequences of the EU's "war on cash," including negative interest rates and the risk of excessive money supply expansion by banks. He emphasized the need to take advantage of cash in the digital future and to protect the right of individuals to make payments and donations online without having to register their transactions.
The crypto community has had mixed reactions to EU regulatory measures. Some believe that new anti-denomination laws are necessary, while others fear privacy violations and restrictions on economic activity.
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