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EU lawmakers impose €1,000 cap on anonymous crypto, cash transactions

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European lawmakers have adopted legislation imposing a €1,000 (US$1,084) cap on anonymous cryptocurrency transactions, as part of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) package.

See related article: EU looks to place limit on banks holding crypto

Fast facts

  • The draft bill also seeks to cap anonymous cash transactions above €7,000 when it is not possible to identify the sender. The bill had an overwhelming majority of 99 votes in favour, eight against and six abstentions.
  • Lawmakers also voted to establish the European Anti-Money laundering Authority (AMLA) to ensure compliance with the AML/CFT package. The draft bill was adopted with 102 votes to 11 against and two abstentions, according to yesterday’s press release.
  • The European parliament will start negotiations on the final text of the AML/CFT package after a plenary session in April.
  • The draft bills are useful in gauging the direction of upcoming European crypto regulations, as European Central Bank president Christine Lagarde said that developing crypto regulations is an “absolute necessity,” in the wake of FTX’s collapse.
  • The adopted text in the bills also suggests increased compliance for banks and crypto asset managers, requiring them “to verify their customers’ identity, what they own and who controls the company,” and “transmit the relevant information to a central register.”
  • The bills raise market concern about the regulatory approach towards privacy-preserving technologies like crypto mixers, after the U.S. Treasury sanctioned Tornado Cash last August. Non-profit crypto think tank Coin Center filed a lawsuit against the Treasury, alleging that it overreached its authority when sanctioning the crypto mixer and endangered privacy rights.

See related article: Digital dollar push; Tornado Cash blacklisted



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