EU adopts AML rules with €10,000 cash cap and crypto bans

The European Union has approved a comprehensive set of anti-money laundering rules that will impose a bloc-wide cap on cash payments and introduce stringent new requirements for the cryptocurrency sector starting in July 2027. The regulation, formally known as Regulation (EU) 2024/1624, is scheduled to take effect on July 10, 2027, and represents a significant expansion of the EU's financial oversight framework.

A central provision establishes a harmonized limit of 10,000 euros on commercial cash payments for goods and services across all member states. Individual countries will retain the authority to set lower national thresholds. For cash transactions valued at 3,000 euros or more, businesses will be required to verify customer identities and conduct due diligence checks. The limit does not apply to private transactions between individuals or to deposits made through banks and other regulated payment institutions.

The regulation introduces sweeping changes for the crypto asset industry. Crypto Asset Service Providers (CASPs), such as exchanges and custodians, will be prohibited from offering services for privacy-focused cryptocurrencies like Monero, Zcash, and Dash. These...