European Union Lawmakers have recently adopted new draft legislation under which they will impose a 1000 Euro cap on anonymous crypto asset transfers. The approach of the EU is centered around combating money laundering and terrorist financing.
Reportedly, the European Parliament also stated that such a limit would apply only to the crypto transfer where customers can’t be identified. However, the cap transactions will also be capped at 7,000 Euros. The proposed draft can be set confirmed in the plenary session going to be held in April.
Alongside, it was also observed that the European Anti–Money Laundering Authority (AMLA) which was formed in June 2022 will eventually enforce the new rules. As a result, the new authorities need to cooperate with the national supervisors and keep a watch on the riskiest crypto asset service providers and companies in the sector.
It can also be inferred that the introduction of the bill will require a greater level of transparency and a stronger compliance mechanism, especially from the crypto–asset managers. Moreover, all the related entities such as banks, crypto asset managers, real and virtual estate agencies, and football clubs, everybody has to verify their customers’ identities and provide descriptions of their assets and holdings.
The news surfaced after the European Banking Federation (EBF) released a paper sharing the details of its vision for the digital money ecosystem on March 28, 2023. The paper indicated that EBF plans to establish a three-tiered model for the digital euro comprising the European Central Bank role and two from the industry. The first level of Industry would be focused on interacting with the single Euro payments areas while the second level would be developed and operated by the private sector.
However, the final vote on the EU’s crypto rules (MiCA) has been deferred to April 2023.