BEFORE YOU GO...
Check how Shufti Pro can verify your customers within secondsRequest Demo
The EU countries have signed an agreement according to which the crypto-service providers must conduct customer due diligence as per updated AML guidelines to ensure stronger control over transactions in the region.
The European Union nations have signed an agreement to set a new limit on cryptocurrency cash purchases, ensuring more substantial control of transactions across the region. The group of countries has approved a limit of 10,000 Euros ($10,557) on all cash payments. Also, the EU has agreed to establish a standard of scrutinising every crypto transaction over 1000 Euros ($1,055) with proper checks and balances.
These requirements are applicable to all EU member states as the bloc has introduced a new set of directives to increase the security of cash crypto transactions. It said that “by limiting large cash payments, the EU will make it harder for criminals to launder dirty money.”
According to the new EU guidelines, “All crypto-asset service providers (CASPs) will have to conduct due diligence on their customers. This means they will have to verify facts and information about their customers.” It also emphasised adding measures to mitigate the risks of money laundering from self-hosted wallet transactions.
According to Zbynek Stanjura, the Czech Republic Finance Minister, “Large cash payments beyond €10.000 will become impossible. Trying to stay anonymous when buying or selling crypto-assets will become much more difficult.”
The measure will be implemented across several areas, such as goldsmithing, jewellery, cultural goods, and trading precious metals and tools. Stanjura added, “Hiding behind multiple layers of ownership of companies won’t work anymore. It will even become difficult to launder dirty money via jewellers or goldsmiths.”
The new directives aim to protect the EU’s financial system against terrorist financing and money laundering.
Stanjura had the following remarks in this regard:
“Terrorists and those who finance them are not welcome in Europe. In order to launder dirty money, criminal individuals and organisations had to look for loopholes in our existing rules, which are already quite strict. But our intention is to close these loopholes further and to apply even stricter rules in all EU member states.”
The council will soon initiate the trialogue negotiations with the European Parliament to agree on the final version of the texts.
Suggested Read: European Banking Authority Publishes Final Guidelines on Remote Customer Onboarding