European Union announced that it had reached a tentative agreement to impose stricter regulations on cryptocurrency companies. The decision, announced Thursday, was expanded as part of a broader effort to improve coordination between national authorities to combat money laundering.
The agreement was reached after long negotiations between representatives of European Union member states and the European Parliament. It is also part of a package of anti-money laundering measures aimed at addressing inconsistencies in how countries currently approach fraud and financial crime.
Under the agreement, existing EU anti-money laundering rules, cryptocurrency It will be expanded to include more participants in the ecosystem. Cryptoasset service providers will be required to conduct due diligence checks on customers making transactions of €1,000 or more and report suspicious financial activity. Additional verification requirements will apply for cross-border crypto companies.
The rules also aim to prevent the use of self-hosted digital wallets that allow users to directly control their private keys. These types of wallets have gained notoriety because they allow criminals to hide funds more easily.
In addition to cryptocurrency traders; The regulations will also apply to sellers of luxury and high-value goods such as precious metals, jewellery, luxury vehicles and aircraft. The requirements are intended to make it more difficult to transfer illicit gains into assets that retain their value and are easy to move or conceal.
As part of wider efforts to curb the use of foreign currency in illegal transactions, the agreement imposes a €10,000 limit on cash payments across the EU. However, in order for these provisions to become law, they must be approved by member states and the Parliament.