The new AML rules tighten digital asset controls over crypto service providers and users, and prohibit anonymous transactions using custodial wallets and confidential assets.

On April 24, the European Parliament held a final vote on the introduction of a new Anti-Money Laundering Regulation (AMLR), which will come into force in three years. Deputies approved new rules to combat illegal transactions and measures to curb money laundering, and also entrusted supervisory functions to a new agency, the Anti-Money Laundering and Counter-Terrorism Financing Authority (AMLA).

The updated rules will affect all participants in the digital asset sector. The EU is introducing a complete ban on anonymous payments through custodial wallets or transactions using privacy coins, as well as the use of services aimed at providing additional privacy for both digital assets and their users.

The document instructs all companies and “authorized persons” to conduct extensive verification of counterparties if they use digital assets to pay for goods or services “in an amount of at least 1,000 euros or the equivalent in national currency, regardless of whether the transaction is carried out in the form of a single operation or through multiple related transactions.”

Also, providers of crypto-related services will be required to comply with standard KYC/AML procedures. The new rules will not apply to hardware and software providers, nor to developers of non-custodial wallets such as MetaMask or Trust Wallet, which do not have access to or control over digital assets.

Earlier, Piero Cipollone, a member of the board of directors of the European Central Bank (ECB), spoke about preparations for the launch of the digital euro, including the highest privacy standards for the future digital currency of the European Union.