Balkans | The European Union is preparing to limit cash payments to 10,000 euros

European Union (EU) member states have agreed to limit cash payments to €10,000 and strictly monitor cryptocurrency transactions over €1,000.

The European Council announced that member states agreed in negotiations on the new regulation that will establish strict rules for the financial system to prevent money laundering and terrorist financing. Accordingly, the existing regulatory framework will be expanded and gaps filled.

Stricter rules will apply to financial transactions in EU member states. To make money laundering more difficult for criminals, large amounts of cash payments will be limited in EU countries.

Cash payments exceeding €10,000 will be prohibited in EU countries. Member states will be able to impose a limit of less than 10,000 euros for cash payments.

Money laundering by jewelers will become more difficult.

The European Union will be able to extend AML/CFT rules to the entire cryptocurrency industry.

Crypto asset service providers will need to take care of their customers. In this context, crypto service providers will have to check facts and information about their customers.

Identity privacy will become more difficult for crypto assets

Hiding identities will become more difficult when trading crypto assets. Crypto service providers will have to do due diligence for customers who have transacted over 1,000 euros.

Third countries listed by the Financial Action Task Force (FATF), which sets international standards for preventing money laundering, will also be included by the EU. Within this framework, EU black and gray lists will be created that reflect the FATF lists.

After this stage, negotiations will take place between the European Council and the European Parliament to finalize the aforementioned regulation.

After the two institutions agree on a joint legal text, the regulation will be formally approved and put into effect.

At the moment, the European Union has no restrictions on cash payments. However, many member states set their own limits.

Cash payments can be up to €1,000 in France, €3,000 in Italy, Belgium and Portugal, and up to €15,000 in Poland.

For payments beyond these limits, the banking system must be used.

Currently, there is no cash payment limit in Germany, but for payments over €10,000, identification is required.

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