The European Union has announced that stricter controls will be imposed on cash and crypto asset transactions from July 2027, under new anti-money laundering rules aimed at combating financial crimes. The regulations are included in regulation No. 2024/1624 published in the EU Official Journal.
New limit will be applied to cash payments
According to the new framework, commercial cash payments over 10 thousand euros for goods and services will be banned throughout the European Union. Member states can lower this threshold even further if they wish. According to the regulation, deposits made to banks subject to supervision will be excluded from this limit.
The European Union’s new anti-money laundering rules introduce a 10,000 euro ceiling on payments for goods and services starting from July 2027, while also tightening identity verification obligations in crypto transactions.
In addition, identity check will be required for cash transactions starting from 3 thousand euros. Thus, the aim is for authorized institutions to monitor high-amount financial movements more closely. The EU states that these steps will contribute to reducing the risk of money laundering.
The scope of the regulation is not limited to the financial sector only. Luxury consumer companies, football clubs, crowdfunding platforms and structures that offer residence or citizenship services through investment are also included in the scope of the rules. Transparency requirements regarding ultimate beneficial ownership of companies and assets have also been expanded.
Surveillance will increase for crypto service providers
The new rules also include significant changes for crypto asset service providers. According to the regulation, anonymous crypto accounts will not be allowed on regulated platforms. Exchanges and similar service providers will have to establish systems that can verify the identity of all customers.
Mini-dictionary: Know-your-customer is the compliance process that requires financial institutions to verify the identity of their customers and monitor their transactions for risk. Crypto asset service providers include licensed platforms that offer trading, custody or transfer services.
According to the rules in the text, stricter control mechanisms will come into play in some crypto transactions over 1,000 euros. Identity verification may also be required for lower amount transactions, but whether this will be mandatory in all cases will vary depending on the transaction type.
Regulation also focuses on tools to increase privacy in transactions; Platforms will not be allowed to offer accounts or services that obscure the transaction trail.
Private wallets are excluded
The regulation does not directly prohibit individual holdings of privacy-focused cryptocurrencies. However, regulated exchanges and depository institutions will be able to act more limitedly in listing, supporting or providing services to these assets.
On the other hand, direct transfers between personal wallets were not covered by these authentication rules. In contrast, service providers will be expected to establish stronger control mechanisms in cross-border crypto activities. Until the regulations come into force, financial institutions and crypto companies will need to adapt their systems to new obligations.
