MEPs have taken a significant step towards combating money laundering, terrorist financing, and sanctions evasion by approving a cap of 1,000 euros on unverified user crypto transactions.
The European Parliament issued a press release stating that the new bill establishes a “single set of rules” for the entire EU, with measures such as comprehensive due diligence of clients, scrutiny of transactions with crypto assets and other tools that preserve anonymity, and monitoring of various financial institutions, including crowdfunding platforms.
The bill was approved by 99 votes, with 8 votes against and 6 abstentions. The new law sets a limit of 7,000 euros for cash payments and 1,000 euros for transfers of crypto assets for users with unverified identities.
Additionally, the legislation prohibits “golden passports” and introduces more stringent measures for “golden visas” schemes aimed at residency investment.
Banks, real estate agents, professional football clubs, and other organizations that manage traditional and digital assets will now be required to verify the identity of their clients.
The law also stipulates that organizations should identify different types of money laundering and terrorist financing risks associated with their activities and report them to competent authorities.
MEPs also approved the creation of the Anti-Money Laundering Authority (AMLA) to oversee the crypto industry in the European Union.
The agency will monitor credit and financial institutions, receive complaints from users, and act as an intermediary between people and financial supervisors. 102 legislators voted for the initiative, with 11 against and 2 abstentions.
It is worth noting that in March, the European Parliament passed legislation on a digital identification system to safeguard the privacy of EU citizens’ digital wallets.