- EU parliament is about to bring anti-money laundering law for crypto.
- Lawmaker says this law will not affect crypto payments.
The EU parliament has voted to impose payment limits on unverified crypto users to curb money laundering. There are also some plans in motion to disallow businesses from accepting huge amounts in cash and for the creation of the European Union Anti-Money Laundering Agency (AMLA).
The Economic and Civil Liberties committees approved these plans on March 28, when six members were absent. Among those present, 99 lawmakers voted in favor, while 8 voted against.
EU Parliament and Crypto
The French lawmaker Damien Careme, leading the negotiation on the subject, spoke to the media. The plans in motion shall not prevent crypto payments, as the cap of 1,000 euros does not apply if the provider of a regulated wallet is involved or the payer’s identity is well known.
The proposed measures are because of multiple money sandals within the league of cryptocurrency. These included the Pandora Papers leak and the processing by the Danske Bank of some Russian funds.
The voting triggered discussions among the members of EU member states, as most of them are against crypto anonymity. The parliament is also scheduled to pull out a final signoff on the rules ensuring the identification of crypto payers in April 2023. They want to know the identities of the parties involved in the transfer.
Are These Rules Against Crypto Payments?
According to a prominent EU lawmaker, these new money laundering rules are not to block crypto payments. This statement came out on March 28, just hours before the scheduled voting for the legislation.
The rules state that an upper limit of 1,000 euros is imposed on payments from self-hosted wallets, still using users’ anonymity. Further clarifying regarding fears, Damien said they are not blocking crypto payments; the rules are only for anonymous payers.
Damien Careme is one of the two lawmakers responsible for negotiating the proposed law on behalf of the parliament. The Metaverse shall be governed by AML laws. This could be because he does not want dirty money to flow without a watch in other sectors.
How Will this Legislation Become Law?
After the voting procedure, the lawmakers will begin discussions with the EU council, where bloc representatives would come together to frame an applicable version of the law.
Last year’s draft saw the Council seeking to stop banks and other crypto providers from managing the transactions of cryptocurrencies, promising anonymity. But then Careme argued such a ban was not required as most players of this practice are already banned by the EU’s Market in Crypto Asset regulation (MiCA).
Implication On the Crypto Industry
EU’s attempt to restrain money laundering is commendable. On many occasions, it was argued that cryptocurrency provides a free way for money laundering due to its features like anonymity, decentralization and lack of regulations. If this legislation comes into effect, it can curb money laundering in crypto to a considerable extent.
Almost every authority and agency tries to bring the crypto industry under some regulation. The US SEC has sued Ripple and Coinbase regarding selling unregistered securities. They are trying to prove that crypto assets are basically securities and shall be treated as such. If they succeed, crypto exchanges and issuers must line up for registration, bringing them under regulation.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/03/28/eu-to-bring-aml-laws-wont-hamper-crypto-payments-lawmakers/