New laws will prohibit crypto assets sell or purchase beyond €1,000 and also will strictly monitor the crypto transactions to fight against illegal crypto fund transactions.
The European Union (EU) is a very big market for the crypto sector. Markets in Crypto (MiCA) is a leading crypto framework developer in the EU and possibly its comprehensive crypto regulatory framework will come into effect by 2023. In the present time, the majority of the EU members are regulating cryptocurrencies in their ways, to fight against illegal activities associated with cryptocurrencies.
On 7 December, EU Members of the bloc announced that new laws will restrict crypto purchases worth above €10,000, and also there will be significant regulatory restrictions on digital assets transactions above €1,000.
Czech minister for Finance Zbyněk Stanjura said such new rules will help to fight against money laundering activities easily, where bad actors are using cryptocurrencies as a means of an anonymous payment option as a loophole in the existing laws on Crypto sector.
“(EU’ new rules’) intention is to close these loopholes further and to apply even stricter rules in all EU member states. Large cash payments beyond €10.000 will become impossible. Trying to stay anonymous when buying or selling crypto-assets will become much more difficult,” Minister said.
So now all the crypto-linked or associated service providers should have to introduce new AML/CFT rules in their corresponding platforms to prohibit & report crypto transactions above €1,000.
It is worth noting that new AML rules will not be applicable on Defi (Decentralised Finance) because it is the nature of all the Defi protocols where people can trade in any amount without any limit or restriction. But there may be chances that Defi developers may face regulatory action heat in this situation if they will be based in the EU.