The EU has introduced a new directive banning transactions using anonymous, privately controlled cryptocurrency wallets, regardless of the transaction amount.
representative of the european parliament revealed The directive was announced on Thursday as having been approved by a majority of the EU Parliament's Guidance Committee.
The latest regulation aims to combat money laundering, placing limits on cash transactions and banning all anonymous crypto transactions. Specifically, cash transactions exceeding 10,000 euros and anonymous cash transactions exceeding 3,000 euros will be illegal.
EU law
The law targets transactions from private, unregistered crypto wallets to regulated service providers, effectively restricting their use due to the inherently anonymous and permissionless nature of cryptocurrency networks. .
The regulation mandates increased oversight of the transfer of crypto assets and requires crypto companies to conduct strict due diligence to prevent money laundering. The scope of entities required to comply with these regulations has expanded to include most of the crypto industry, requiring thorough customer background checks.
The law also emphasizes the need for detailed records of actual beneficiaries with the aim of disclosing the true owners or managers of a legal entity. The initiative will enable a wide range of organizations, including banks, real estate companies, and cryptocurrency operators, to strengthen their know-your-customer processes.
The latest EU regulations are revolutionizing the way cryptocurrencies are offered, managed, and traded in the region. Last week, major exchange OKX announced the delisting of USDT trading pairs in the region in accordance with the rules imposed on stablecoins by the upcoming MiCA regulations.
