The European Union is preparing one of its biggest anti-money laundering reforms in years. Starting in July 2027, the new Anti-Money Laundering Regulation (EU) 2024/1624 will introduce stricter controls on cash payments, cryptocurrency transactions, and several high-risk industries.
The goal is to create a single rulebook across all EU member states and make it harder for criminals to move money through traditional finance or digital assets.
EU Introduces €10,000 Cash Payment Limit
One of the most significant changes is a bloc-wide limit on large cash transactions.
Under the new regulation, businesses will no longer be allowed to accept commercial cash payments above €10,000. While some EU countries already have their own cash restrictions, this creates a common rule across the entire bloc.
Member states can still introduce lower limits if they choose. The regulation also introduces additional checks for smaller transactions.
- Businesses will be required to verify customer identities for cash payments of €3,000 or more.
- Private transactions between individuals remain exempt.
- Bank deposits and payments through regulated financial institutions are also not affected.
Meanwhile, EU regulators believe large cash transactions remain one of the easiest ways to hide illicit funds. Therefore, setting cash limits is an important part of the new framework.
Crypto Exchanges Face Tougher KYC Rules
The regulation also introduces major changes for crypto companies operating in Europe.
Crypto-Asset Service Providers (CASPs), including exchanges and other regulated crypto businesses, will need to perform enhanced Know Your Customer (KYC) checks on certain transactions.
Under the new rules, occasional or one-time crypto transactions worth €1,000 or more will trigger stricter identity verification requirements.
Anonymous Crypto Accounts and Privacy Coins Face Ban
Perhaps the most controversial part of the regulation involves anonymous crypto services. The EU will prohibit regulated platforms from offering anonymous crypto accounts, anonymous custodial wallets, or services where ownership cannot be clearly identified.
The regulation also targets privacy-focused cryptocurrencies.
Crypto exchanges and regulated providers will not be allowed to support anonymity enhancing privacy coins under the new framework.
European regulators says that these assets make it more difficult to track suspicious financial activity and enforce anti-money laundering rules. However, the regulation does not completely ban private crypto ownership.
Self-Custody Wallets Remain Outside the Rules
One important detail for crypto users is that genuine peer-to-peer transactions remain unaffected.
The regulation focuses primarily on regulated intermediaries such as exchanges and custodial service providers. People using self-custody wallets or hardware wallets to transfer assets directly to one another will not be subject to the new €1,000 KYC threshold.
As a result, decentralized wallet-to-wallet transfers can continue without the additional reporting requirements applied to exchanges.
New AML Authority Will Oversee Compliance
To enforce the new framework, the European Union has created a new regulator known as the Anti-Money Laundering Authority (AMLA).
Based in Frankfurt, Germany, AMLA will supervise some of the bloc’s largest cross-border financial institutions and coordinate anti-money laundering enforcement across member states.
For most everyday crypto investors, the changes will likely be felt when using regulated exchanges. At the same time, the regulation provides greater clarity for crypto businesses operating within Europe.
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