- Crypto companies may force verification of customers who make transactions worth less than €1,000.
- The plans were explained as an attempt to stop the financing of terrorism.
- Such measures may become part of new anti-money laundering legislation.
As part of the preparation of anti-money laundering legislation, officials in Europe are considering crypto companies introducing thorough checks on customers who make transactions worth less than €1,000. This was reported by DLNews with reference to the draft law.
European lawmakers discussed “behind closed doors” what steps they could take to identify individuals carrying out transactions in crypto assets of any amount, but did not reach an agreement, the report said.
According to journalists, officials plan to pass the law because they are concerned that terrorism can be financed not only in large but also in small amounts.
“Transactions over €1,000 will require cryptocurrency companies to conduct more thorough customer due diligence, such as clarifying the relationship between the parties involved in the transaction,” – the journalists found out.
French Green Party legislator Damien Carême said:
“We support the idea, but we need more information about the proportionality of this measure at this time.”
The official said that cryptocurrency transactions of small amounts can be used for money laundering and terrorist financing. In addition, he added that NFTs should be on an equal footing with other crypto assets.
It should be noted that in early October, the Israeli authorities blocked Hamas crypto wallets. Tether later froze addresses associated with financing the war in Ukraine and Israel. The media also reported that more than 100 Hamas accounts were blocked on Binance.