EU Tightens Crypto Oversight with New Privacy Coin Restrictions

Regulation (EU) 2024/1624 mandates that crypto-asset service providers implement rigorous customer due diligence for transactions exceeding €1,000. While these firms must now abandon anonymity-enhancing assets, the legislation stops short of banning the private ownership or personal use of such currencies. The rules specifically target the intermediaries—exchanges and custodians—rather than the underlying blockchain protocols, ensuring that self-hosted wallet interactions avoid the new verification threshold.

Beyond digital assets, the framework harmonizes commercial cash payments with a new €10,000 ceiling. Businesses handling cash transactions of €3,000 or more are now legally obligated to perform identity checks. The scope of these anti-money laundering mandates extends further to include professional football clubs, luxury goods dealers, and crowdfunding platforms. Additionally, the EU has tightened beneficial ownership transparency, lowering the reporting threshold to 15% for high-risk structures to prevent the concealment of illicit financial interests.