A measure that could raise some eyebrows in the middle of “Qatargate”. The European Union decided at the end of last week to limit cash payments to 10,000 euros, in order to fight against money laundering and the financing of terrorism. Cryptocurrency transactions above 1,000 euros will also be more closely monitored.
Cash payments restricted in the European Union
The decision was taken within the framework of discussions within the Council of Europe, which outlined new rules for protection against money laundering (AMLD6). Zbyněk Stanjura, the Minister of Finance of the Czech Republic, specified in particular that the regulatory framework would be further tightened:
“Terrorists and those who finance them are not welcome in Europe. […] Our intention is to further address the existing shortcomings, and to apply even stricter rules in all Member States of the European Union.»
With a first key measure: the limitation of cash payments to 10,000 euros. Residents or visitors to the European Union will no longer be able to make cash transactions above this amount. Member States will also be free to apply lower thresholds. As a reminder, cash payments are already limited to 1,000 euros in France.
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Cryptocurrencies even more monitored
TFR regulations already provided for the monitoring of most cryptocurrency transactions, but this monitoring should be stepped up again, according to the Council. Europe will ask service providers not only to collect the information, but also to verify it:
“That means that they will have to verify the facts and information about their customers. […] The Council has also introduced specific measures […] for the international relations of crypto-asset service providers.»
A particularly strict new positioning, which further reduces private payment options for residents of the European Union. A choice made by the Board, which specifies:
“Large Cash Payments […] will become impossible. Trying to remain anonymous while buying or selling crypto-assets is going to get much harder. Hiding behind multiple corporate layers will no longer work. It will even be difficult to launder dirty money through jewelers or goldsmiths.»
Growing demands on exchanges could in any case be difficult to execute. Several companies have indicated that the requirements of the European Union are complicated to follow, if not impossible. Asking these services to verify the veracity of the information for each transaction, in particular with self-hosted wallets, seems in any case difficult to achieve.
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Source: Council of Europe, press release
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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