Cash Purchases Capped by EU, Crypto Transactions Scrutinized

There has been a decision made by the European Union to limit cash purchases to €10,000 and to closely monitor crypto transactions exceeding $1,000.

Cash Purchases Capped by EU, Crypto Transactions Scrutinized

As part of the bloc's efforts to prevent money laundering, members of the bloc announced this on December 7.

Closing crypto loopholes with new rule

Czech minister for Finance Zbyněk Stanjura stated that their “intention is to close these loopholes further and to apply even stricter rules in all EU member states. Large cash payments beyond €10.000 will become impossible. Trying to stay anonymous when buying or selling crypto-assets will become much more difficult.”

The revised AML/CFT rules require crypto-asset service providers (CASPs) to conduct due diligence on customers who conduct transactions in excess of €1000. Risk mitigation measures will increase for self-hosted wallets as CASPs become more prevalent.

Each EU member state also uses a country classification system based on recommendations from the Financial Action Task Force (FATF).

DeFi Commissioned Report by the EU

Regulators in Europe are currently contemplating how to regulate DeFi and the risks associated with it. A study was commissioned by the European Central Bank a few months ago.

The study concluded that DeFi regulation should be extended to include DAOs, platform developers, and governance token holders.

Growth in the DeFi sector in Europe could be adversely affected. AML/CFT standards are already implemented by centralized crypto platforms.MiCA regulations have also been criticized by European regulators for failing to prevent a repeat of FTX's collapse in 2024. Cyprus granted FTX a license.

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