The final text of the EU Anti Money Laundering Act increases the encrypted payment limit for self hosted wallets to 7000 euros

According to reports, according to the latest anti money laundering bill of the European Parliament, commercial encryption restrictions may no longer need to be associated with licensed encryption companies. After industry opposition, policymakers have reverted to using the old version of the text. In the latest version of the bill, the maximum value of cash transactions for commercial payments is 7000 euros, while the maximum value of encrypted transactions involving pseudonymous wallets is 1000 euros. The text of the bill allows exceptions to the cash threshold of 7000 euros for interpersonal payments, except for deposits in real estate, luxury goods, or financial institutions.  

Interpretation of this information:

The European Parliament’s latest anti-money laundering bill is causing controversy among encryption companies. Initially, the bill suggested that commercial encryption restrictions must be associated with licensed encryption companies. However, after industry backlash, policymakers revised the bill to use the previous version of the text. The new bill states that the maximum value of cash transactions for commercial payments is 7000 euros, whereas encrypted transactions involving pseudonymous wallets are limited to 1000 euros. Nevertheless, the bill specifies that exceptions to the cash limit of 7000 euros apply to interpersonal payments, except those made for luxury goods, real estate, or deposits in financial institutions.

The European Parliament is strengthening anti-money laundering regulations under the 5th Anti-Money Laundering Directive, which applies to member states of the European Union. The Directive requires EU states to carry out due diligence assessments on financial transactions and their clients. The recent amendments to the bill offer stricter limits on cash and encrypted transactions, thereby making it difficult for individuals or entities to conceal illicit financial activities by breaking amounts down into smaller transactions.

The revised bill has polarized public opinion, with some experts concerned that the lowered threshold for encrypted transactions may affect the privacy of law-abiding citizens while not necessarily deterring criminal activities. Large technology firms like Apple, Facebook, and Google are expected to oppose the bill’s Section 126 – which requires crypto exchanges to register and share client information with regulatory authorities.