EU Imposes Limits on Cash and Enhances Cryptocurrency Oversight

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EU Imposes Limits on Cash and Enhances Cryptocurrency Oversight
EU Imposes Limits on Cash and Enhances Cryptocurrency Oversight

The European Union has established a new limit on cash purchases and is implementing stronger supervision of cryptocurrency transactions. This includes a 10,000 euro ($10,557) limit on cash payments and enhanced oversight of cryptocurrency transactions above 1,000 euros ($1,055).

The goal of these measures is to prevent illegal activities such as money laundering and terrorism financing, while also promoting transparency and accountability in financial transactions. These actions are being taken by the countries of the European Union to ensure the integrity of financial systems within the region.

"Cash payments of more than 10,000 euros will be impossible. Remaining anonymous when buying or selling crypto assets will be much more difficult. Hiding behind several layers of corporate ownership will no longer work. It will be even more difficult to launder dirty money with jewelry or goldsmithing." said Zbynek Stanjura minister of finance of the Czech Republic.

EU Imposes Limits on Cash

The European Union has implemented a series of measures designed to reduce the use of cash and alternative currencies such as cryptocurrencies for illegal purposes. On November 6, the union approved a new limit on cash payments of up to 10,000 euros ($10,557) across all member countries, though individual states may choose to impose a lower limit.

These actions are intended to curb criminal activity and promote transparency in financial transactions within the union. The European Union has implemented measures to increase scrutiny on cash payments, gold transactions, and cryptocurrency transactions in order to prevent money laundering.

Service providers related to cryptocurrencies, such as exchanges, will be required to apply party due diligence measures for transactions over 1,000 euros and confirm the identity of users for all transactions. The union will also classify countries based on their compliance with the Financial Action Task Force's recommendations and subject virtual asset service providers to anti-money laundering controls.

These measures may decrease the anonymity of the cryptocurrency market. The European Central Bank previously deemed such measures "disproportionate" because they may limit the use of cash as legal tender.

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