What are we talking about today?
The recently adopted provisions of the European Union, which entered into force on 19 March 2024, represent a significant shift in the regulation of cryptocurrencies , especially in the area of the European Union. These new measures bring stricter limits and standards that will have a far-reaching impact not only on individual users but also on large institutions and companies. In today’s blog, we consider the key aspects of these provisions and investigate how they will affect the future of business and privacy in the world of cryptocurrencies, and we will try to find out whether the European Union regulation is logical, or if it still harms the majority of users, and thus the organization itself.
Source: cointelegraph
Newly adopted decisions
The European Union’s new anti-money laundering laws restrict cash and some crypto transactions, but the proposed restrictions on unregistered wallets are still not included in the final version. A majority of leading members of the European Parliament’s committee dropped the €1,000 ($1,080) cap on cryptocurrency payments from private and anonymous crypto wallets as part of new anti-money laundering laws. On the 19th In March, the Committee on Economic and Monetary Affairs of the European Union and the Committee on Civil Liberties, Justice and Home Affairs adopted the Anti-Money Laundering Regulation (AMLR), on which the European Council and Parliament reached a provisional agreement in January. An earlier proposal that limited transactions to amounts of less than 1,000 euros when using a private wallet for transactions was removed along with a provision aimed at implementing identity checks on private wallets. However, crypto exchanges, called crypto asset service providers (CASPs) in the EU, must carry out user identity checks – for users making business transactions of at least €1,000.
The law works alongside other crypto-market-focused legislation, such as Market Regulation ( MiCA ) and others, to reinforce existing bans on CASPs (exchanges) providing accounts to anonymous users or trading cryptocurrencies such as Monero (XMR), which hide information about transactions, i.e. they have private transactions. CASPs (exchanges) must also “apply mitigations” to transactions between their platform and the private wallet – where users hold their private keys – which includes at least verifying the identity of the wallet owner where funds from the exchange wallet were sent. The laws capped cash payments at $10,800 (€10,000) – with the option for EU member states to set lower limits – and banned anonymous cash payments above $3,240 (€3,000). AMLR is expected to be fully operational within three years – sometime in 2027. – after receiving approval from the Council of the EU and the plenary session of the European Parliament, which is scheduled for 10 April.
Source: cointelegraph
How will this affect users?
The new regulation of cryptocurrencies of the European Union brings significant changes for users of crypto wallets and exchanges. Users will have to adapt to stricter identification rules when making transactions of more than 1,000 euros. This could reduce the anonymity that some users have valued in the crypto space, but at the same time it increases the transparency and security of transactions. With cash withdrawals limited to €10,000 and a total ban on anonymous cash withdrawals above €3,000, users will have to rely more on bank transfers and other forms of digital payments. These measures should help fight money laundering and terrorist financing, but may also lead to increased administrative burdens and costs for users and service providers. Ultimately, the regulation aims to create a safer and more stable crypto environment, which could encourage greater trust and wider adoption of cryptocurrencies in Europe. On the other hand, there is a possibility that many users will see this new regulation as excessive, and simply choose another place of residence where the crypto regulation is much milder. There are numerous countries that have a much more liberal approach to the regulation of cryptocurrencies, and you can read about them in our blog .
Source: cointelegraph
What happens to private wallets?
With the new regulations, private wallets, which until now have allowed users to hold and transfer cryptocurrencies anonymously, will face greater scrutiny. Although the original restrictions on private wallet transactions of less than 1,000 euros were not approved in the final version of the law, exchange offices (CASPs) will be forced to carry out identity checks for transactions involving private wallets and amounts of 1,000 euros or more. This means that users who want to make larger transactions will have to reveal their identity, reducing the level of privacy that private wallets have provided.
Source: cointelegraph
Conclusion
The new regulations of the European Union represent a significant step towards the future of cryptocurrency regulation. By removing the limit on private wallets of less than 1,000 euros, the EU has shown flexibility to the needs of small investors who found this earlier proposal absurd, while at the same time introducing stricter identification measures for larger transactions. These changes are likely to increase transparency and security in the crypto market, but may also limit the anonymity that some users have valued and create a negative image of the European Union among crypto enthusiasts. Given that AMLR will be fully operational only in 2027. year, crypto companies and users have time to adapt to the new rules. How these measures will affect the crypto market in the EU zone remains to be seen. On our social networks, you can write us your opinion about these laws, do you think they are directing European countries in the right direction, or do you still think that less regulation is needed, i.e. a freer market. Likewise, if you have any suggestions, you can always contact us on our social networks ( Twitter , Instagram ).
