The European Parliament has passed legislation prohibiting anonymity for cryptocurrency transactions.
Date: 2024-04-25 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
On 24 April 2024, the European Parliament took a significant step in the fight against money laundering and terrorist financing by adopting the Anti-Money Laundering Regulation (AMLR). This decision, introduced after the final vote, represents a set of measures to tighten control over cryptocurrency operations and crypto service providers.
AMLR aims to tighten customer data collection requirements and require identity verification when using cryptocurrencies to pay for goods or services. Under the new rules, "required entities" and service providers must collect more information about users to prevent illegal transactions. These measures apply to transactions of at least €1,000 or the equivalent in local currency.
One of the key aspects of the new legislation is a complete ban on anonymous payments through custodial wallets or using privacy coins. This means that services aimed at providing additional privacy, such as cryptomixers, will be illegal.
Mairead McGuinness, the EU's financial commissioner, said the new rules would apply to all areas where there is a real risk of illegal activity, from cash to cryptocurrencies.
It should be noted that the legislation does not affect hardware and software providers, as well as non-custodial wallets that do not have access to or control over digital assets.
Once the AMLR is approved by the European Parliament, the document must be published in the Official Journal of the European Union, which is expected to happen in June 2024. The provisions will come into force three years after final approval, i.e. no earlier than 2027.
