European lawmakers abandoned introducing a €1,000 limit for crypto payments. However, the restriction will affect not just self-custody cryptocurrency wallets.
The European Parliament’s Economic and Monetary Affairs Committee (ECON) and the Civil Liberties, Justice, and Home Affairs Committee (LIBE) adopted the Anti-Money Laundering Regulation (AMLR). The new legislation will restrict certain types of crypto transactions, but the law’s final version doesn’t include restrictions for non-custodial wallets.
The €1,000 limit on crypto payments from self-custody wallets was removed. A provision requiring the implementation of identity verification for non-custodial wallets receiving funds was also dropped.
However, crypto-asset service providers (CASP) in the EU, which include crypto exchanges and other trading platforms, will be required to implement identity verification for users who transact more than €1,000.
Moreover, when assets worth over €1,000 are transferred from a non-custodial wallet to an exchange account, the platform administration must verify the recipient’s identity. In addition, the new rules prohibit the use of cryptocurrencies with a higher level of privacy, such as Monero.
The new rules also introduced restrictions on cash payments over €10,000 and banned anonymous cash payments above €3,000. However, EU member states are free to set lower limits.
Patrick Breyer, Member of the European Parliament, criticized the bill. The politician called the new rules a “war on cash” and said that the bill jeopardizes the economic independence and financial privacy of EU citizens. Similar sentiments are expressed by other European politicians and crypto community members, who fear that the new rules could violate privacy and restrict economic activity.
The bill still needs to be finally approved by the plenary session of the European Parliament, which next meets on April 10, and members of the EU Council. It won’t come into full effect until 2027, three years after its final approval. Restrictions on crypto transfers worth more than €1,000 were recommended by the European Banking Authority (EBA).
