European Parliament Issues Legislation To Combat Unverified Crypto Transactions

The European Parliament is trying to take tougher steps toward regulating the crypto industry, especially against crypto users who have no verified identity.

Members of the European Parliament from the Economic and Monetary Affairs Committee (ECON) and the Civil Liberties, Justice and Home Affairs Committee (LIBE) voted in favor of imposing a €1,000 limit on crypto transactions in which crypto users have unverified identities.

Under this new law, all entities, such as banks, assets and crypto assets managers, real and virtual estate agents, and high-level professional football clubs, will be required to verify their customers’ identity, according to Bitcoinist.

A statement by the European Parliament said: To restrict transactions in cash and crypto assets, MEPs want to cap payments that can be accepted by persons providing goods or services. They set limits up to €7,000 for cash payments and €1,000 [$1,084] for crypto-asset transfers, where the customer cannot be identified.”

The European Parliament’s move aims to combat money laundering, terrorist financing, and evasion of sanctions in the EU.

European Parliament Member Aurore Lalucq pointed out in a tweet that new legislation specifically affects cryptocurrency trading platforms and NFTs. Lalucq noted that the NFTs are now subjected to anti-money laundering rules, adding the NFT marketplaces have to comply with the new requirements.

The European lawmaker underlined that the European Anti-Money Laundering Authority (AMLA) will outline a list of risky platforms based outside the EU.

Meanwhile, Damien Carême, a French lawmaker, said the legislation does not aim to ban crypto payments but to target money laundering, asserting the limit cap only applies to unregulated wallets and unverified users.