Controversial Crypto Law On The Agenda: To Be Voted On This Date!


The European Parliament is considering changing the text of a controversial crypto money laundering bill. The new text will be voted on next week…

European Parliament reverts to ‘payment restrictions’ in crypto AML law

EU officials will meet on March 28 to vote on word choices in the text of the anti-money laundering law. The cryptocurrency industry has expressed concerns about the bill, urging policymakers to return to the original wording on commercial payments.

A clause of the law was added by members of the European Parliament and aimed to limit the transaction value for investors to accept transactions belonging to a fully defined cryptocurrency wallet owner. The previous draft regulation stated that only transactions of 1,000 euros ($1,090) above the equivalent from EU licensed crypto service providers would be allowed.

DeFi players are worried

Concerns of the crypto market centered on the possibility of deviating from existing regulatory frameworks and hindering DeFi innovation. The updated law limits cash transactions to 7,000 euros for business payments, while maintaining the 1,000 euro limit for cryptocurrency transactions with self-hosted wallets.

Exceptions were made to the €7,000 cash limit for person-to-person (P2P) payments, except for real estate, luxury goods or deposits to financial institutions. The revised draft states that the transaction limit applies only to self-hosted addresses where “customers or beneficial owners can be identified.”

The bill, which includes a directive for the European Commission to reassess the commercial payments rule within three years to align with regulations such as the European Union’s digital identity framework and the recently proposed Anti-Money Laundering Authority requirements, is expected to be approved by the Committee.

Following that, the bill needs to pass plenary vote before engaging in inter-agency discussions, which could provide an opportunity to reconsider commercial cryptocurrency payment requirements.

European cryptocurrency regulations

Cryptocurrency regulations in Europe were determined by different approaches of different countries. But overall, European countries are taking more and more steps in the regulation of cryptos. Below are some examples of important legal regulations:

  • EU Money Laundering and Terrorism Financing Directive (AMLD5): It provides a set of new regulations for cryptocurrency exchanges and wallet providers in EU countries. These regulations include verifying the identity of customers, conducting risk assessments to prevent money laundering and terrorist financing, cooperating with regulatory authorities, and other transparency requirements. The regulation took effect on January 10, 2020.
  • Germany’s Cryptocurrency Regulations: Germany is working on a new bill for cryptocurrencies. The bill will provide the legal definition of cryptos, set licensing and regulatory requirements, and update relevant tax laws. The enactment of this bill will be an important step in terms of Germany’s regulations for cryptocurrencies. As you follow, the US regulator SEC launched multiple legal moves throughout March. It also evaluates regulations with experts at the US Commodity Futures Trading Commission.


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