EU Lawmakers Vote in Favor of Payment Limits on Anonymous Crypto Wallets

TL;DR Two key committees in the European Parliament voted on Tuesday to impose limits on payments by unverified crypto users as part of a large scale overhaul of money laundering laws. The measures include capping payments at 1,000 euros and will not apply if a regulated wallet provider is involved or the identity of the payer is known. These measures are being proposed following a string of dirty money scandals within the bloc and will now be negotiated with the Council representing EU member states.

Lawmakers on two key committees in the European Parliament have voted in favor of imposing limits on payments by unverified crypto users, as part of a large scale overhaul of money laundering laws.

The plans, considered alongside measures to forbid businesses from accepting large cash payments and create a new European Union Anti-Money Laundering Agency, AMLA, were approved by the parliament’s Economics and Civil Liberties committees on Tuesday, with six abstentions.

99 lawmakers voted in favor, while 8 voted against the limits.

Damien Carême, the French lawmaker who leads the parliament’s negotiations on the overhaul, earlier told reporters that the plans wouldn’t prevent crypto payments, since the cap of 1,000 euros won’t apply if a regulated wallet provider is involved or the identity of the payer is known.

The measures were proposed following a string of dirty money scandals within the bloc, including the Pandora Papers leaks and concerning the processing of Russian funds by Danske Bank.

The vote allows negotiations to begin with the Council, representing EU member states, which has sought to outlaw cryptocurrencies that permit anonymity, such as monero and dash. In April the parliament is also set to provide final signoff to rules ensuring payers are identified when funds are transferred.

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