Member States of the European Union have introduced a new Increase limits and control over cryptocurrency transactions. On Nov. 6, Brock agreed to impose a €10,000 ($10,557) limit on cash payments and put stronger scrutiny on crypto transactions above €1,000 ($1,055).
European Union ostensibly restricts use of cash to combat money laundering
European Union countries announced more difficult A series of new directives to prevent the use of alternative currencies such as cash and cryptocurrencies for criminal purposes. On November 6, the EU approved new limits on cash payments, capped at a maximum of €10,000 ($10,557) across all member states. However, countries can further reduce restrictions.
Spain currently has the lowest limits in this regard, with citizens only allowed to pay up to €1,000 ($1,055) in cash. However, the European Central Bank (ECB) voiced its opposition in 2018, deeming the measure “disproportionate” as it could limit the use of cash as effective legal tender. .
It’s not just cash payments that will be affected by this new set of measures. Other sectors, including jewelery and goldsmithing, will also face increased control from the organization.
His Zbynek Stanjur, Minister of Finance of the Czech Republic, said:
Cash payments above €10,000 are not possible. Maintaining anonymity when buying and selling crypto assets becomes much more difficult. Hiding behind layers of corporate ownership no longer works. It is even more difficult to clean money that has been stained with jewelry or goldsmithing.
Introduces a new national system taxonomy that reflects each country’s level of compliance.
Cryptocurrencies are also included
As Stanjur noted, cryptocurrencies are also included as part of this continuum. The European Union has agreed that cryptocurrency transactions with a value greater than €1,000 ($1,055) will face due diligence scrutiny by 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 terrorist financing scrutiny that other financial institutions already face. These exchanges and custody providers must implement risk mitigation factors when dealing with self-hosted wallets and other specific measures to control cross-border payments using cryptocurrencies.
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