On 24 April 2024, the Anti-Money Laundering Regulation (AMLR) passed its final vote in the European Parliament. Lawmakers approved new rules to combat illegal transactions, which will also affect the digital assets segment.
The document instructs obligated entities and service providers to collect more data about users. Companies must also conduct thorough customer due diligence when using cryptoassets to pay for goods or services.
This rule applies to transactions “of at least €1,000 or the national currency equivalent, regardless of whether the transaction is carried out as a single transaction or through linked transactions,” the document says.
The AMLR also provides for the introduction of “risk mitigation” measures. These include blockchain analytics, crypto asset data collection, and other activities. Industry related service providers are also required to comply with standard KYC/AML procedures.
In addition, the EU is introducing a complete ban on anonymous payments through custodial wallets or transactions using privacy coins. Cryptomixers and other services aimed at providing additional privacy will be illegal.
“From cash to crypto assets, from real estate to luxury goods and football clubs, we are targeting all areas where there is a real risk of illegal activity,” EU Financial Commissioner Mairead McGuinness commented on the AMLR vote.
The new rules will not affect hardware and software providers, as well as non-custodial wallets that do not have access to or control over digital assets. These include products such as MetaMask and Trust Wallet.
Once the AMLR is approved by European parliamentarians, the document must be published in the official journal of the European Union. This is expected to happen in June 2024. The provisions will come into force three years after their final approval - that is, no earlier than 2027.
