European Union (EU) officials have given the green light to new restrictions on anonymous transactions involving crypto assets and cash, sparking concerns about financial freedom among citizens. The crackdown, which includes banning cash payments over €10,000 ($10,862) and anonymous cash payments over €3,000 ($3,258), as well as imposing no threshold on crypto payments to hosted wallets, is set to be overseen by the Anti-Money Laundering Authority (AMLA).
Patrick Breyer, a German member of the EU Parliament, has criticized the move, stating that it will limit the financial freedom of innocent citizens without significantly impacting crime. The establishment of AMLA will lead to increased supervision for all firms, not just those directly under watch, as national supervisory authorities will be under heightened scrutiny.
Regulators in other parts of the world are also taking steps to crack down on illicit activities involving digital assets. In the United States, the Treasury Department has announced plans to target self-custody crypto wallets, citing concerns about the anonymity they provide being exploited by bad actors.
The new restrictions on anonymous crypto and cash transactions approved by EU officials have raised questions about the balance between security and financial freedom. Investors are advised to do their due diligence before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. The Daily Hodl does not recommend buying or selling any cryptocurrencies or digital assets and is not an investment advisor.
