BRUSSELS, Monday, April 20, 2024 – In a move welcomed by cryptocurrency enthusiasts, the European Parliament’s economic and civil liberties committees have scrapped a proposed €1,000 (approximately $1,080 USD) limit on crypto transactions from self-hosted wallets. 1
The proposal was part of a broader Anti-Money Laundering (AML) regulation package being debated by the European Union (EU). Concerns arose that the limit would be impractical and hinder the use of legitimate self-custody wallets, where users hold their own private keys to cryptocurrencies.
The decision to remove the limit came on March 19th during a joint session of the Economic and Monetary Affairs Committee and the Civil Liberties, Justice and Home Affairs Committee. These committees are leading the legislative process for the AML regulation.
While the proposed limit is no longer on the table, crypto exchange platforms, known as “crypto-asset service providers” (CASPs) within the EU, will still be subject to “customer due diligence” (CDD) checks. This requires them to verify the identity of users conducting transactions exceeding €1,000.
This move signifies the EU’s attempt to balance concerns about money laundering and terrorist financing with fostering innovation within the cryptocurrency sector.
- Blockchain Autonomy: https://www.europarl.europa.eu/meetdocs/2014_2019/plmrep/COMMITTEES/CJ12/AG/2024/03-19/1297044EN.pdf[↩]
