EU Cracks Down on Cash and Crypto with €10k Limit and Tougher KYC Rules

The European Union is set to introduce significant anti-money laundering reforms starting in July 2027. The new regulation, EU 2024/1624, aims to create a single rulebook across all member states and make it harder for criminals to move money through traditional finance or digital assets.

One of the key changes is the introduction of a bloc-wide limit on large cash transactions. Businesses will no longer be allowed to accept commercial cash payments above €10,000. Member states can still introduce lower limits if they choose. The regulation also introduces additional checks for smaller transactions, requiring businesses to verify customer identities for cash payments of €3,000 or more.

The new framework also targets crypto companies operating in Europe. Crypto-Asset Service Providers (CASPs), including exchanges and regulated crypto businesses, will need to perform enhanced Know Your Customer (KYC) checks on certain transactions. Occasional or one-time crypto transactions worth €1,000 or more will trigger stricter identity verification requirements.

The regulation also prohibits regulated platforms from offering anonymous crypto accounts, anonymous custodial wallets, or services where ownership cannot be clearly identified. European regulators believe these assets make it more difficult to track suspicious financial activity and enforce anti-money laundering rules. However, the regulation does not completely ban private crypto ownership.