The European Union is taking firm steps in addressing money laundering and terrorist financing issues related to cryptocurrency. Recently, EU lawmakers proposed to establish a limit on payments and transactions of cryptocurrency users without verified identities. This regulation is applicable to all entities such as banks, real estate agents and crypto asset managers. The proposed limit of €1,000 and €7,000 for crypto and cash payments respectively is implemented to monitor financial activities and fight against money laundering.

The EU is also revising its Anti-Money Laundering (AML) regulations, but the new law does not aim to ban crypto transactions. On the contrary, only unverified wallets and users are subjected to the limits mentioned above. This limit is to serve as a precautionary measure against illegal financial activities.

Furthermore, the EU member states have voted to establish the Anti-Money Laundering Agency (AMLA) to ensure compliance with AML and Counter Terrorism Financing (CFT) regulations. This agency will conduct intense supervision within the EU and monitor risks and threats outside the region. Moreover, it will accept whistleblowers’ complaints and ensure that supervisors in the non-financial sector carry out sufficient oversight.

In conclusion, the EU is taking firmer steps towards cryptocurrency regulation, particularly towards preventing money laundering and terrorist financing acts. The proposed €1,000 and €7,000 limits aimed at unverified users and wallets is a primary measure of this comprehensive approach. The AMLA is to supervise the implementation and integration of AML/CFT regulations and monitor any potential risks, both internal and external to the European Union.



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