The European Parliament has approved strict new anti-money laundering laws that will prohibit anonymous cash payments over €3,000 in commercial transactions, prohibit cash payments over €10,000, and completely ban anonymous encrypted payments to custodial wallets, even for small amounts.
According to a tweet by Patrick Breyer, a member of the European Parliament from the Piratenpartei Deutschland (Pirate Party Germany), the European Parliament’s leadership committee approved the new anti-money laundering law on March 19. Breyer was one of only two members who opposed the law.
The new legislation imposes restrictions on cash transactions and anonymous cryptocurrency payments. According to the new rules:
– Anonymous cash payments over €3,000 will be prohibited in commercial transactions.
– Cash payments over €10,000 will be completely banned in commercial transactions.
– Anonymous encrypted payments to custodial wallets will be prohibited, even for small amounts.
This ban specifically applies to custodial wallets provided by third-party service providers, such as centralized exchanges.
Breyer expressed his opposition to the law, stating that the ban on anonymous payments has minimal impact on crime but deprives innocent citizens of their financial freedom. He argued that if every payment is permanently recorded and stored, it creates risks of hacking, unauthorized investigations, and government surveillance of every purchase and donation.
Breyer believes that there needs to be a way to bring the best features of cash into the digital future. People should have the right to make online payments and donations with encrypted cryptocurrencies without their payment behavior being recorded without cause. Compared to completely anonymous cash, cryptocurrency transactions can be traced through the blockchain, especially Bitcoin.
The legislation is expected to be fully implemented within three years of coming into effect.