EU proposed $1,080 limit on crypto wallets doesn’t make AML laws

The European Parliament has made a step forward in combating anti-money laundering and fraud in the cryptocurrency sector, passing comprehensive new laws last week, and getting a step closer to introducing the Anti-Money Laundering Regulation (AMLR) in the process.  The AMLR as the piece of legislation is known still has a few votes to go before it can be implemented.

However, a notable piece of the legislation was cut out in the final draft approved by the European Union’s Economic and Monetary Affairs Committee and the Civil Liberties, Justice, and Home Affairs Committee, with the proposed €1,000 ($1,080) limit on cryptocurrency payments for self-hosted cryptocurrency wallets not featured in the regulatory framework.

The measure was deemed impractical and did not make the most recent version of the law, citing worries that it would competitiveness and bog down consumers in red tape. However, Crypto-Asset Service Providers or CASPs as cryptocurrency exchanges are known under European Union law will still have to perform customer due diligence, with the onus now shifting to them to ensure that they are carrying out all necessary checks that prevent money-laundering operations.

The law seeks to reinforce existing regulations, including Markets in Crypto-Assets (MiCA) laws which were set to help bring unison in European cryptocurrency markets and ensure that criminals are not using anonymous accounts and untraceable virtual assets, such as Monero.

CASPs will also be tasked with running additional checks when allowing consumers to transfer funds from the exchanges back to consumers’ self-custody wallets, ensuring that they verify the identity of the consumer requesting the transfer, and definitely not allowing anonymous parties to carry out such transactions.

The AMLR will not be implemented with immediate effect, however, as the law will have a three-year grace period during which it will be introduced gradually. Before the grace period may begin, however, it will still need the EU Council and European Parliament final say-so.

Although the $1,080 limit was dropped from the proposed legislation, the measures are still too restrictive, according to Daniel Tröster, the host of Sound Money Bitcoin Podcast, who has argued that the new regulation creates a lot of hurdles for well-meaning businesses and consumers, while it doesn’t do that much to stop bad actors who are likely to continue finding loopholes, use digital mules, or simply migrate to other jurisdictions to use as buffers for their nefarious affairs.

Looking for your next crypto casino? Check out Mega Dice or FortuneJack!

Written by

Similar News