The European Union has enacted new anti-money laundering regulations that will prevent licensed crypto firms from handling privacy-focused cryptocurrencies, while peer-to-peer Bitcoin transactions between self-hosted wallets remain outside the scope of mandatory identity checks. Starting July 2027, Regulation (EU) 2024/1624 imposes stricter customer verification duties on crypto-asset service providers and bans services that enhance transaction anonymity. The legislation also introduces a bloc-wide limit of €10,000 on commercial cash payments and broadens compliance requirements for sectors vulnerable to money laundering, such as professional football clubs and luxury goods dealers.
Under the framework, regulated entities like exchanges and custodians must perform full customer due diligence for crypto transactions of €1,000 or more. For smaller amounts, identification is still needed but with less rigorous verification. The rules explicitly forbid anonymous accounts and services that enable transaction obfuscation, including those involving anonymity-enhancing cryptocurrencies. However, the regulation does not prohibit individuals from owning or using privacy coins privately, and direct transfers between self-hosted wallets do not trigger identity verification obligations under EU law. Separate Travel Rule requirements apply when regulated intermediaries are involved in transfers with self-hosted wallets exceeding €1,000.
Beyond crypto, the regulation establishes a standardized €10,000 cash payment cap across the EU, with member states able to impose stricter limits. Cash transactions of €3,000 or more require customer identity verification. Deposits and payments through banks or electronic money issuers are exempt from this cap but remain subject to existing monitoring systems. The legislation also expands the list of entities covered by anti-money laundering rules, including crowdfunding operators and investment migration businesses, and strengthens beneficial ownership transparency requirements, with ownership thresholds set at 25% generally and 15% for higher-risk structures.