EU lawmakers voted to impose a €1,000 restriction on cryptocurrency transactions if the customer cannot be verified.
Members of the European Parliament from the Economic and Monetary Affairs Committee and the Civil Liberties, Justice, and Home Affairs Committee adopted positions on three pieces of draft legislation on the financing provisions of the EU Anti-Money Laundering and Counter-Terrorism Financing policy on Tuesday.
One of those three is the “single rulebook,” which tries to harmonize financial regulation across the EU. Within it, there’s a provision “on conducting due diligence on customers, transparency of beneficial owners and the use of anonymous instruments, such as crypto-assets, and new entities, such as crowdfunding platforms.”
This requires entities, such as banks, asset and crypto assets managers, real and virtual estate agents and high-level professional football clubs “to verify their customers’ identity, what they own and who controls the company” in these crypto-related activities.
“To restrict transactions in cash and crypto assets, MEPs want to cap payments that can be accepted by persons providing goods or services. They set limits up to €7,000 for cash payments and €1,000 [$1,084] for crypto-asset transfers, where the customer cannot be identified,” the European Parliament added.
Damien Carême, the French lawmaker in charge of the overhaul’s negotiations in parliament, previously told reporters that the proposals would not prevent crypto payments because the cap of €1,000 would not apply if a regulated wallet provider is engaged or the payer’s identity is established.
Aurore Lalucq, a European Parliament member, highlighted on Twitter that the new rule primarily targets cryptocurrency trading platforms and non-fungible tokens (NFTs), stressing that NFTs will now be subject to anti-money laundering rules, and NFT platforms must now comply with these legal obligations.
The vote will then start negotiations with the Council, which represents European Union member states–most of which have attempted to restrict cryptocurrencies that allow for anonymity. In April, the parliament is also expected to give final approval to laws that ensure payers are named when cash are moved.
Following the EU vote but not directly related, the Eurotower and the European Central Bank (EZB) building in Frankfurt, Germany, were both lit by a spotlight that shows the bitcoin logo. The Batman signal-inspired act is claimed by the ‘Bitman’ collective to promote Bitcoin as an alternative to traditional finance.
“The ‘Bitman’ collective wants to encourage people to form their own opinions on what they believe is the best currency in the world. They feel that many institutions, including the EZB, intentionally discredit Bitcoin and provide false information to citizens,” said a Twitter user who highlighted the stunt.
The stunt was also done on the facade of the Deutsche Bank building.
“Maybe the #ECB and [ECB President Christine Lagarde] are feeling better when the colors are blue and yellow like #Euro. #Bitcoin is a symbol of freedom for #Europe and the #World,” said Bitman on Twitter.
Information for this briefing was found via Bitcoin.com, Coindesk, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
