The European Union has unveiled a groundbreaking regulation banning all transactions via private, anonymous crypto wallets, regardless of the transaction’s value A spokesperson for the European Parliament revealed that this directive received the endorsement of a significant majority within the EU Parliament’s leading committee last Thursday

This novel regulation, aimed at combating money laundering activities, introduces strict restrictions on cash transactions and entirely forbids anonymous dealings in cryptocurrencies It specifically outlaws any cash transactions exceeding €10,000 and any anonymous cash transactions above €3,000 The measure focuses on curtailing transactions between private, unregistered crypto wallets and regulated financial entities, significantly limiting their utility owing to the intrinsic anonymous and permissionless nature of cryptocurrency networks

It demands increased scrutiny over the transfer of cryptocurrency assets and obligates crypto enterprises to adopt comprehensive due diligence protocols to prevent money laundering The regulation expands the range of entities obligated to comply, covering a vast section of the crypto industry, thereby enforcing extensive checks on customer backgrounds

Moreover, the legislation stresses the importance of maintaining meticulous records of the actual beneficiaries, with the goal of identifying the genuine owners or individuals in control of legal entities This effort requires an array of organizations, including banking institutions, real estate companies, and crypto firms, to enhance their customer verification mechanisms

The introduction of these regulations by the EU marks a significant transformation in the handling, provision, and exchange of cryptocurrencies within the region In response to the impending MiCA regulations affecting stablecoins, leading cryptocurrency exchange OKX recently declared it would cease listing USDT trading pairs in the European market, a move that highlights the significance with which the EU views its regulatory approach towards the crypto sector

In a world where digital currencies are increasingly important, these steps by the EU show their commitment to ensuring a secure and regulated environment for the exchange of digital assets As https//coinatorycom/cryptocurrency-news/eu-crypto-transactions-17956/ to transparency and security, these measures by the EU, featured on Coinatory, underscore the evolving landscape of cryptocurrency regulation