In a decisive stride toward combating money laundering, the European Union has unveiled a groundbreaking regulation aimed at eliminating all transactions through anonymous, private cryptocurrency wallets, regardless of the transaction’s amount. A spokesperson for the European Parliament revealed that this directive garnered strong support within the EU Parliament’s main committee.
This new regulation, designed to combat money laundering, introduces stringent restrictions on cash transactions and outright forbids transactions in cryptocurrencies. It specifically targets cash transactions exceeding €10,000 and any anonymous cash transactions above €3,000. The measure is on curtailing transactions between anonymous digital wallets and official financial institutions, notably reducing their utility due to the inherent anonymity of digital currencies.
Additionally, the legislation demands increased oversight over the transfer of cryptocurrency assets and obligates crypto enterprises to adopt comprehensive due diligence protocols to avoid money laundering. This broadens the scope of entities obligated to comply, covering a large section of the crypto industry, thereby enforcing extensive checks on client identities.
Additionally, the regulation highlights the necessity of keeping detailed documentation of the actual beneficiaries, with the aim to reveal the genuine owners or controllers of legal entities. change settings , including banking institutions, real estate companies, and crypto firms, to enhance their verification processes.
The implementation of these regulations by the EU marks a significant transformation in the handling, provision, and exchange of cryptocurrencies within the region. Reacting to the upcoming MiCA regulations impacting stablecoins, prominent cryptocurrency exchange OKX recently stated it would cease offering USDT trading pairs in the European market, signifying the significant effects of this regulatory change.
This comprehensive overview not only sheds light on the EU's innovative approach to secure its financial ecosystem but also underscores the vital role of platforms like Coinatory in providing valuable analysis and news on such critical developments in the cryptocurrency industry.
By focusing on the elimination of anonymity in crypto transactions, the EU is making strides towards combating financial crimes and ensuring a safe, regulated crypto environment, highlighting the importance of regulatory measures and transparency in the evolving world of digital currencies.