EU approves ban against third-party anonymous crypto transactions
The European Union’s (EU) new AML measures aim to restrict self-hosted & third-party anonymous crypto transactions.
The European Union (EU) is a group of European countries (27) that work together on issues like trade, laws, and security. To regulate the crypto sector, the EU lawmakers introduced Markets in Crypto Assets (MiCA) to regulate the crypto sector in the EU member countries. This rule is getting into effect in step-by-step phases from this year.
The EU lawmakers decide to introduce some big changes in the EU Anti Money Laundering (AML) measures to fight against the flaws & loopholes to prohibit money laundering activities.
For this, the European Parliament’s lead committees have approved a ban on cryptocurrency transactions of any value made through hosted crypto wallets.
Under the new changes, people will be prohibited from using anonymous sources of crypto funds or self-hosted/non-custodial crypto wallets, basically a decentralized crypto wallets provided by the centralised crypto exchanges.
Along With this new change, Cash payments over 3,000 euros will be prohibited in commercial transactions, and payments over 10,000 euros will be entirely banned in business transactions.
These new rules under the AML measure are getting mixed reactions from the EU crypto community. Some people called this a great move to fight against the illegal bad actors of the crypto sector, on the other hand, some people said that it is going to bring a very big issue for financial privacy & crackdown on the fundamentals of crypto.
As per reports, the newly introduced rule under the AML measures will come into 100% effect within the next 3 years.
Some crypto enthusiasts said that new laws are not going to steal people’s freedom of using self-custody crypto wallet use cases totally, there are chances that they may introduce some kind of laws to allow people to use such decentralised crypto wallets with full KYC reporting, just like people are doing in South Korea.
Read also: SEC chairman says “Crypto markets could use a little disinfectant”
