The European Union is trying to prevent money laundering and its latest move was to change laws on the anonymity of cash and cryptocurrency transactions to avoid gray areas that previously led to suspicious transactions.
New regulations
Thanks to the new regulations anti Money Laundering (ALD)the limit for cash payments is set at 10,000 eurosand if the transactions are anonymous, the limit is 3,000 euros.
In addition, the legislation will have an impact on the growing cryptocurrency market. Wallets containing unidentified cryptocurrencies are not permitted, including any wallets operated by unauthorized providers, including mobile, desktop or browser-based wallets.
The laws are being implemented 3 years after his official presentation. However, according to Dillon, a Dublin law firm, they will be implemented before the deadline. However, not everyone agrees with these laws. One of the Members of the European Parliament, Patrick Breyer, a member of the German Pirate Party, fears for financial freedom. Establish a financial independence Overall, people need to be able to conduct anonymous transactions. Breyer said the new laws could have economic and social consequences for EU citizens.
It is unknown whether the new laws will be useful in this regard Prevent money laundering. While some people believe it could be a great help in avoiding the problem, others are afraid of losing something financial freedom and privacy.
Added to this is the concern about Unbanked people that use cash, and other businesses that generate a lot of cash. Aside from that, Self-custodial wallets are concerning as there could be the possibility of using various technological options, including decentralized exchanges and privacy-focused blockchains.
The new regulations could mean many changes to the technology market. Cryptocurrencies in Europe. This could hinder financial innovation and inclusion and reduce the use of cryptocurrencies in the region.
The exceptions
However, there are some some exceptions when it comes to something new Regulations. These include private transactions for which there are no limits, so the flow of small and personal transactions remains unchanged.
Next to the Authority to combat money laundering and terrorist financing (AMLA) will be responsible for monitoring the entire process and its task will be to coordinate the national organizations and communicate with the authorities of the Countries of The EU.
To ensure this, the EU has agreed to these exceptions fair and considerate laws and regulationsand at the same time prevent the main problem.
Spring: Hogg, Lea: ““New EU legislation bans unidentified cryptocurrency transactions”. March 27, 2024.
