EU's Bold Move: Anonymous Crypto Transactions Banned - Details Inside

European Commission Adopts New Legislation to Limit Anonymous Cryptocurrency Transactions

The European Parliament's lead committees have greenlit a prohibition on anonymous cryptocurrency transactions via hosted crypto wallets. This move is part of the EU's expanded Anti-Money Laundering (AML) and Counter-Terrorist Financing laws.

New AML legislation, endorsed on March 19, introduces caps on cash transactions and anonymous cryptocurrency payments. In commercial transactions, anonymous cash payments exceeding €3,000 will be prohibited, while in business transactions, payments exceeding €10,000 will be entirely banned.

The ban on anonymous crypto transactions targets specifically hosted or custodial crypto wallets provided by third-party service providers, such as centralized exchanges.

EU's New Anti-Money Laundering Law Sparks Divided Reactions in the Cryptocurrency Community

MEP Patrick Breyer (Pirate Party of Germany), one of the few dissenters, contends that the legislation undermines economic independence and financial privacy. Breyer argues that anonymous transactions are a fundamental right and warns against the potential negative consequences of increasing bank dependency.

The EU's regulatory measures have elicited varied responses from the crypto community. While some advocate for the necessity of the new AML laws, others express concerns about potential privacy infringements and economic constraints.

New AML Law Triggers Debate in Crypto Community: Daniel 'Lody' Terstegge Explores Its Actual Impacts and Challenges

Daniel "Loddi" Tröster, host of the Sound Money Bitcoin Podcast, emphasizes the practical obstacles and consequences of the legislation, particularly its impact on donations and cryptocurrency use within the EU.

Opponents of the ban highlight the traceability of cryptocurrency transactions on the blockchain and argue that law enforcement has successfully utilized this feature to combat crime. They also question the relevance of Virtual Assets to the global financial system and the evidence supporting claims of widespread money laundering.

The new legislation is slated to be fully operational within three years of its enactment.