Anonymous cryptocurrency transactions are under a total ban in the European Union

A new bill prohibiting the use of anonymous crypto wallets in the European Union was adopted on March 19. This was reported by MEP Patrick Breuer on the social network X. This law is part of a large set of EU legislative initiatives to combat money laundering (AML).

The new rules prohibit all anonymous cryptocurrency payments and cash transactions that exceed certain limits. In particular, cash payments in excess of EUR 10,000 and anonymous cash transactions in excess of EUR 3,000 are prohibited. The ban also applies to non-custodial wallets in the form of mobile, desktop or browser applications.

The law is due to enter into force in three years, however, it may be applied earlier, which may increase concerns about privacy and financial inclusion of users. In addition, regulation could create significant barriers to innovation and prevent the widespread adoption of cryptocurrencies in the region.

«We need to find ways to introduce the best features of cash into our digital future. We also have the right to pay and donate in cryptocurrencies without having to report it unnecessarily. If the EU thinks it can regulate virtual currencies on its own, the legislators do not understand what the global Internet is,» said Breyer. The MEP also fears that increased surveillance of financial transactions may restrict personal freedoms and help hackers.

This year, a set of requirements for the cryptocurrency market called MiCA (Markets in Crypto-assets) will come into force in Europe, which may not only change the attitude of Europeans to digital currencies but also affect the regulation of cryptocurrencies in other countries.