• The European Union is developing safeguards and preventive measures against money laundering and the financing of terrorism.
• In order to combat these, the new regulations will ensure that crypto is not a potential vulnerability. 

The subject of crypto regulations has its own diversified following with both supporters and opponents. Countries across the globe also fall into these categories according to their stance towards crypto. The European Union, which generally considered to possess a relatively liberal perception towards the burgeoning asset class, took a step toward its governing. 

Cash and Crypto Transfer Restrictions on Unverified Users 

The ‘New EU measures,’ released on Tuesday, March 28, focused on money laundering and terror-financing, reportedly targeted unverified crypto users. Members of the European Parliament and Economics and Civil Liberties committees voted on the new amendments of regulation on anti-money laundering (AML) and terror-funding. 

One of the main highlights in the newly formed regulations was the 1000 Euro limit on payments for unverified crypto users. In addition to the limit on crypto asset transfers, there is also a cap on cash payment transactions up to 7000 Euro for unverified users.

According to the release, entities including banking institutions, crypto assets managers, real and virtual estate agents, etc. would need to verify identities of customers on their platform. They will also be required to reveal the “money laundering and terrorist financing” risk within the operational region.

Specific Efforts to Eradicate AML/CFT Issues

The recent actions of the European Union indicates their willingness to counter the potential threat of money laundering and terrorism funding by any means, including crypto. It was also reported to create the European Union Anti-Money Laundering Agency (AMLA). The proposal was passed after 99 lawmakers voted in favor of the plan. The newly created committee will possess powers to ‘supervise and investigate’ operations to verify if they are complying with required anti money laundering and combating the finance of terrorism obligations.

In addition, the agency will be tracking the potential monetary and other risks and threats both internal and offshore. It will also oversee the several particular financial institutions and depending upon the risk, it will also categorize them. 

The Members of European Parliament (MEPs) reportedly provided AMLA with the authority to act as mediator to resolve disputes between financial supervisors. The agency will also look over the complaints arising out of whistleblowers’ actions and keep a check on non-financial sector supervisors.

Source: https://www.thecoinrepublic.com/2023/03/30/new-european-measures-limit-unverified-crypto-transactions/