EU lawmakers have voted in favour of imposing limits on transactions carried out by anonymous and unverified cryptocurrency users, as part of the bloc’s new anti-money laundering (AML) measures.
The measures are meant to prevent cryptocurrencies, non-fungible tokens (NFTs), and the metaverse from being utilised for financial crimes.
The new limits prohibit traders from making or receiving anonymous crypto transfers exceeding €1,000 (£879).
Larger transactions are permitted if the customer’s identity can be confirmed or if a regulated crypto provider is involved.
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Crypto transfers between private individuals, such as large payments between friends, will still be allowed.
The proposal considers the use of privacy coins, such as monero (XMR-USD) and crypto mixers, which obfuscate the sender and receiver of cryptocurrency transactions, as additional factors when evaluating money-laundering risks.
The legislation also forbids EU crypto providers from maintaining a correspondent relationship with unregistered or unlicensed foreign cryptocurrency providers.
The proposal was approved after 99 lawmakers voted in favour, eight voted against, with six abstentions.
It is part of legislation connected to the new European Union Anti-Money Laundering Agency (AMLA).
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For the new measures to become law both the EU Parliament and the European Council must agree.
The legislation comes ahead of the bloc’s 19 April vote on the Markets in Crypto Assets Regulation (MiCA) bill, which brings forth a new licensing regime for crypto and digital assets within the EU.
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