A majority of the leading committees in the European Parliament have eliminated the 1,000 euro limit on cryptocurrency payments made from self-hosted crypto wallets as part of new anti-money laundering laws. The Anti-Money Laundering Regulation (AMLR), which was passed by the European Union’s Economic and Monetary Affairs Committee and the Civil Liberties, Justice and Home Affairs Committee on March 19, has removed the previous proposal that restricted businesses to 1,000 euros for transactions using self-hosted crypto wallets. Additionally, the provision that intended to implement identity checks on self-hosted wallets receiving funds has also been eliminated. However, crypto exchanges, known as Crypto-Asset Service Providers (CASPs) in the EU, are required to conduct identity verification checks on users who carry out business transactions of at least 1,000 euros. The new laws work in conjunction with other regulations, such as the Markets in Crypto-Assets (MiCA) laws, to reinforce the existing restrictions on CASPs from providing accounts for anonymous users or privacy coins like Monero (XMR) which conceal transaction information. CASPs are also obligated to apply measures to transfers between their platform and self-custody wallets, including verifying the identity of the exchange wallet holder if funds from a self-custody wallet are sent. Cash payments are limited to $10,800 (10,000 euros), with EU member states having the option to set lower limits, and anonymous cash payments over $3,240 (3,000 euros) are banned. The AMLR is expected to be fully operational by 2027 after receiving approval from the EU Council and the European Parliament plenary. Patrick Breyer, a member of the Pirate Party Germany in the European Parliament, criticized the new laws, referring to them as a “war on cash” and arguing that they compromise economic independence and financial privacy. The crypto community has had mixed reactions to the EU’s regulatory measures, with some believing they are necessary and others concerned about potential infringements on privacy and restrictions on economic activity. Daniel “Loddi” Tröster, host of the Sound Money Bitcoin Podcast, highlighted the practical challenges and consequences of the legislation, particularly its impact on donations and cryptocurrency use within the EU, expressing concerns about the potential stifling effect of the rules.
EU abandons plan to impose $1K payment limit on self-custody crypto wallets