EU lawmakers have voted to impose a €1,000 limit on crypto transactions where the customer cannot be identified. “Entities, such as banks, asset and crypto asset managers, real estate and virtual agents, and high-level professional football clubs, will have to verify the identity of their clients, what they own and who controls the company”, the European Parliament. emphasized.
Lawmakers vote on new EU regulation
On Tuesday, Members of the European Parliament (MEP) from the Committee on Economic and Monetary Affairs (ECON) and the Committee on Civil Liberties, Justice and Home Affairs (LIBE) adopted their position on three bills on the financial provisions of the EU Anti-Money Laundering Policy and Fight against the Financing of Terrorism (AML/CFT).
One of the three was the “single rulebook” regulation, which aims to harmonize financial regulation across the EU. It was adopted with 99 votes in favour, 8 against and 6 abstentions, according to an announcement by the European Parliament. This regulation contains “provisions on conducting due diligence on customers, beneficial ownership transparency, and the use of anonymous instruments, such as crypto assets, and new entities, such as crowdfunding platforms,” the announcement describes.
“According to the adopted texts, entities, such as banks, asset and crypto asset managers, real estate and virtual agents, and high-level professional soccer clubs, will be required to verify the identity of their clients, what they own and who controls the company. ”, detailed the European Parliament, adding:
To restrict transactions in cash and crypto assets, MEPs want to limit the payments that can be accepted by people who provide goods or services. They set limits of up to €7,000 for cash payments and €1,000 ($1,084) for crypto asset transfers, where the customer cannot be identified.
Member of the European Parliament, Aurore Lalucq, explained on Twitter that the new legislation specifically affects cryptocurrency and non-fungible token (NFT) trading platforms.
He stressed that NFTs, which were not included in the new Mercado de Criptoactivos (MiCA), will now be subject to anti-money laundering rules, and NFT platforms must now comply with these legal obligations. Lalucq added that the European Anti-Money Laundering Authority (AMLA) will be able to establish a list of risky platforms based outside the EU.
In addition, due diligence procedures will be put in place for transactions made with non-hosted wallets, he said, stressing that purchases over €1,000 will only be authorized if the owner or beneficiary can be identified. In addition, the legislator noted that relationships with unregistered or unlicensed platforms and entities will be prohibited and AMLA will establish a list of these entities.
What do you think of the EU legislation imposing a limit of €1000 on crypto transactions where the customer cannot be identified? Let us know in the comments section.
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