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The states of the EU have come together to establish a new limit for cash purchases and to strengthen controls on cryptocurrency transactions. On November 6, the bloc agreed to set a €10,000 ($10,557) limit on cash payments and to exercise stronger oversight of crypto transactions above €1,000 ($1,055).
The countries of the European Union have announced a set of new directives to make it more difficult to use cash and other alternative currencies such as crypto for criminal purposes. On November 6, the bloc approved a new limit on cash payments, which will allow up to €10,000 ($10,557) in all countries that are part of the union. However, countries will be allowed to reduce the limit even further.
Currently, Spain has one of the lowest limits in this regard, allowing residents to pay only up to €1,000 ($1,055) in cash. However, the European Central Bank (ECB) expressed its disagreement with this back in 2018, when the institution qualified the measure as “disproportionate” as it could limit the use of cash as an effective legal tender.
It is not only cash payments that will be affected by this new round of measures. Other sectors, including jewelery and goldsmithing, will also face increased scrutiny from the organisation.
Zbynek Stanjur, Minister of Finance of the Czech Republic, stated:
Cash payments of more than 10,000 euros will be impossible. Remaining anonymous when buying or selling cryptoassets will be much more difficult. Hiding behind multiple layers of corporate ownership will no longer work. It will be even more difficult to launder dirty money with jewelry or goldsmith work.
The bloc will also introduce a new country system classification that will reflect the level of compliance with each of the Financial Action Task Force (FATF) recommendations, including gray and black lists.
As Stanjur said, cryptocurrencies will also be included as part of this set of measures. The European Union agreed that crypto transactions that move above €1,000 ($1,055) in value will face due diligence requests from the virtual asset service providers (VASPs) that facilitate them.
The European Union will also subject VASPs to the same level of anti-money laundering and anti-terrorist financing controls that other financial institutions already face. These exchanges and custodian providers will need to introduce risk mitigation elements when handling self-hosted wallets, and other specific measures aimed at controlling cross-border payments using cryptocurrency.
What do you think of the latest set of anti-money laundering measures adopted by the EU? Tell us in the comments section below.
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