EU sets strict limits for cryptocurrency transactions

European Union countries have announced new rules aimed at reducing the use of cash and cryptocurrencies for criminal purposes.

According to the new EU directive, starting November 6, no more than EUR 10,000 can be used for a single cash payment in EU countries. Czech Finance Minister Zbynek Stanjur assured that this will make it much more difficult for users to remain anonymous when buying or selling digital assets.

The EC has decided that crypto transactions worth more than EUR 1,000 will be verified by transaction operators, virtual asset service providers (VASPs).

In addition, the European Union will check VASPs for anti-money laundering and terrorist financing (AML) as strictly as it checks banks and other financial organizations.

Exchanges and custodial service providers should introduce risk mitigation elements when working with their wallets, as well as other measures to control international cryptocurrency payments.

Recently, the EU authorities issued an addendum to the anti-tax evasion package, which states that any companies that work with cryptocurrency transactions must report transactions to the tax authorities.