The European Union (EU) is making significant moves in eradicating money laundering with new anti-money laundering (AML) legislation. The law, passed by the EU Parliament’s lead commission, targets both cash and cryptocurrency transactions.
The new regulations place restrictions on the use of cash. Any cash payment exceeding €10,000 will be restricted, and any anonymous cash transaction over €3,000 will be forbidden.
Payments with cryptocurrency made with anonymous wallets are prohibited as well. All self-custody wallets are covered by this, regardless of the platform (mobile, desktop, or browser).
The laws are expected to be fully operational within three years. However, some anticipate a quicker rollout. German MEP Patrick Breyer opposes the bill, claiming it compromises economic freedom and financial privacy. He considers the ability to transact anonymously to be a basic right.
These new regulations have created mixed reactions, whereby some believe the new AML laws are necessary, while others fear they may infringe on privacy and hinder economic activity.
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