EU Lawmakers Vote in Favor of Payment Limits on Anonymous Crypto Wallets

Lawmakers on two key committees in the European Parliament have voted in favor of imposing limits on payments by unverified crypto users, as part of a large scale overhaul of money laundering laws.

The plans, considered alongside measures to forbid businesses from accepting large cash payments and create a new European Union Anti-Money Laundering Agency, AMLA, were approved by the parliament’s Economics and Civil Liberties committees on Tuesday, with six abstentions.

99 lawmakers voted in favor, while eight voted against the limits.

Damien Carême, the French lawmaker who leads the parliament’s negotiations on the overhaul, earlier told reporters that the plans wouldn’t prevent crypto payments, because the cap of 1,000 euros won’t apply if a regulated wallet provider is involved or the identity of the payer is known.

The measures were proposed following a string of dirty money scandals within the bloc, including the "Pandora Papers" leaks and concerning the processing of Russian funds by Danske Bank.

The vote allows negotiations to begin with the Council, representing European Union member states, which has sought to outlaw cryptocurrencies that permit anonymity, such as monero and dash. In April the parliament is also set to provide final signing off to rules ensuring payers are identified when funds are transferred.

Read more: EU Money Laundering Law Won’t Prevent Crypto Payments, Lead Lawmaker Says