The European Parliament has approved a new law on combating money laundering, which also prohibits anonymous transactions from custodial wallets. This was stated by MEP Patrick Breyer.
According to him, the ban applies to:
"Banning anonymous payments will have minimal impact on criminals at best, but will deprive innocent citizens of their financial freedom. The drugs or sex toys I buy are my own business. Dissidents [ ... ] are increasingly relying on anonymous donations in virtual currencies around the world," Breuer said.
The MEP believes that the EU's war on cash "will have unpleasant consequences": the risks of negative interest rates and the shutdown of the money supply by banks at any time.
"Dependence on banks is growing at an alarming rate. The deprivation of financial rights must be stopped. We need to think about how we can bring the best attributes of cash to the digital future. We have the right to pay and donate online without registering our personal transactions. If the EU believes that it can regulate virtual currencies at the regional level, then it has not understood the global nature of the Internet, " Breuer said.
According to Cointelegraph, the new legislation will take effect in three years, but lawyers from Dillon Eustace expect the restrictions to be implemented sooner.
Former Binance Director for Asia and Eastern Europe Gleb Kostarev called the decision of the European Parliament "a huge step towards restricting the freedoms of cryptocurrency users."
"What the industry will look like in the future: every wallet, every account will have KYC. And if there is no KYC — you are outside the law," he added.
According to Kostarev, service providers in the EU will be required to identify the client before opening a crypto wallet. He also expects the widespread introduction of the so-called "Travel Rule" from the FATF by European exchanges.
"The days when it was possible to withdraw crypto to any wallet will be a thing of the past. At a minimum, you will need to specify who owns the wallet. When withdrawing money from the exchange, you may be told: you can transfer money to this wallet, but you can't transfer it to this one. And then they will additionally request the reason for the transfer, " Kostarev explained.
As a result, centralized exchanges will be allowed to withdraw only to the same platforms regulated in the EU, he believes.
Circle's Director of Strategy and Regulatory Policy in Europe, Patrick Hansen, noted that the law does not prohibit non-custodial wallets and payments using them, as well as P2P transactions and hardware wallets.
Earlier, MEPs approved criminal terms for circumventing sanctions using cryptocurrencies. The document is awaiting approval by the EU Council.
Recall that by mid — 2025, a new anti-money laundering regulatory body-AMLA-will start working in the EU. The headquarters will be located in Frankfurt. The team will include more than 400 employees.
According to him, the ban applies to:
- cash payments of more than €10,000;
- anonymous cash payments of more than €3,000;
- anonymous cryptocurrency payments through custodial wallets without any threshold.
"Banning anonymous payments will have minimal impact on criminals at best, but will deprive innocent citizens of their financial freedom. The drugs or sex toys I buy are my own business. Dissidents [ ... ] are increasingly relying on anonymous donations in virtual currencies around the world," Breuer said.
The MEP believes that the EU's war on cash "will have unpleasant consequences": the risks of negative interest rates and the shutdown of the money supply by banks at any time.
"Dependence on banks is growing at an alarming rate. The deprivation of financial rights must be stopped. We need to think about how we can bring the best attributes of cash to the digital future. We have the right to pay and donate online without registering our personal transactions. If the EU believes that it can regulate virtual currencies at the regional level, then it has not understood the global nature of the Internet, " Breuer said.
According to Cointelegraph, the new legislation will take effect in three years, but lawyers from Dillon Eustace expect the restrictions to be implemented sooner.
Former Binance Director for Asia and Eastern Europe Gleb Kostarev called the decision of the European Parliament "a huge step towards restricting the freedoms of cryptocurrency users."
"What the industry will look like in the future: every wallet, every account will have KYC. And if there is no KYC — you are outside the law," he added.
According to Kostarev, service providers in the EU will be required to identify the client before opening a crypto wallet. He also expects the widespread introduction of the so-called "Travel Rule" from the FATF by European exchanges.
"The days when it was possible to withdraw crypto to any wallet will be a thing of the past. At a minimum, you will need to specify who owns the wallet. When withdrawing money from the exchange, you may be told: you can transfer money to this wallet, but you can't transfer it to this one. And then they will additionally request the reason for the transfer, " Kostarev explained.
As a result, centralized exchanges will be allowed to withdraw only to the same platforms regulated in the EU, he believes.
Circle's Director of Strategy and Regulatory Policy in Europe, Patrick Hansen, noted that the law does not prohibit non-custodial wallets and payments using them, as well as P2P transactions and hardware wallets.
Earlier, MEPs approved criminal terms for circumventing sanctions using cryptocurrencies. The document is awaiting approval by the EU Council.
Recall that by mid — 2025, a new anti-money laundering regulatory body-AMLA-will start working in the EU. The headquarters will be located in Frankfurt. The team will include more than 400 employees.
