In a major regulatory move, the European Union (EU) has made it illegal to make cryptocurrency payments of any size using anonymous self-storage cryptocurrency wallets.
The move is part of wider new anti-money laundering laws (AML) being introduced across the continent.
The ban was approved by the majority of the leading committee of the EU Parliament on March 19, as Patrick Breyer explained in an article. Dr. is a member of the European Parliament of Deutsch Piraten Partei. Breyer was one of two leaders who opposed this ratification. The other dissenting vote came from Gunnar Beck, a member of Parliament representing the Alternative Für Deutschland (AfD) party.
The new AML law specifically targets certain thresholds for cash payments and any anonymous crypto payments. Notably, any cash payments over €10,000 and anonymous cash payments over €3,000 will be considered illegal.
The ban on payments with cryptocurrencies will specifically apply to unidentified wallets, also known as wallets operated and hosted by service providers. This includes any self-custody wallets provided by mobile, desktop or browser applications.
According to Dillon Eustace, an Ireland-based law firm, the newly approved AML package will be implemented three years after it comes into force. However, the firm expects these laws to be fully functional before the standard implementation timeline.
*This is not investment advice.