The European Union has confirmed that Regulation (EU) 2024/1624 will take effect on July 10, 2027. The new anti-money laundering framework reaches both cash and crypto activity: commercial cash payments will face a bloc-wide cap of €10,000, while occasional crypto transactions of €1,000 or more will trigger full customer due diligence by crypto service providers.
Commercial cash payments face a €10,000 ceiling
Under the regulation, businesses will no longer be allowed to accept cash payments above €10,000 for commercial purchases of goods and services. EU member states may impose lower limits. There is also a separate verification requirement for cash transactions above €3,000, where customer due diligence and identity checks must be carried out.
The cash cap does not apply to private transactions between individuals. Bank deposits and transfers are also outside that €10,000 limit, though they remain subject to existing AML obligations. The stated goal is to create a common framework across the EU and reduce room for money laundering, terrorist financing, and other illicit financial activity.
Crypto exchanges and custodians will need tighter KYC controls
The most direct effect on the crypto market falls on Crypto-Asset Service Providers, or CASPs. Exchanges, custodians, and other regulated crypto firms will be required to conduct full customer due diligence for occasional crypto transactions worth €1,000 or more.
For transactions below €1,000, the material says enhanced verification will not be required, but platforms must still identify users. For European crypto users, that points to possible changes in exchange access, onboarding steps, deposits and withdrawals, and account review procedures once firms begin adapting their compliance systems.
Anonymous crypto accounts are banned and privacy-linked services are restricted
The rule explicitly bans anonymous cryptocurrency accounts on regulated platforms. It also restricts services that enable transaction anonymity or greater obfuscation, including services connected to anonymity-enhancing cryptocurrencies.
At the same time, the regulation does not ban the holding of privacy-oriented coins. The restriction is aimed at regulated service providers and the services they offer around those assets, such as trading, custody, or other regulated activities. That distinction matters because it defines the limits on platform support rather than a blanket ban on ownership.
Transfers between self-hosted wallets are not covered
One of the biggest concerns for Bitcoin users has been whether every transfer would become subject to identity verification. Based on the source material, peer-to-peer transactions between self-hosted wallets are not covered by these obligations. The requirements are aimed mainly at interactions between users and regulated providers such as exchanges and custodians.
That leaves the regulatory focus on supervised gateways into the financial system, especially centralized platforms and custody services, instead of applying the same identity checks to every private wallet transfer.
AML expansion reaches beyond banking and crypto
The framework also broadens compliance obligations across other sectors considered vulnerable to financial crime. The list includes professional football clubs and agents, luxury goods dealers, crowdfunding platforms, investment migration providers, and transactions involving high-value vehicles, yachts, and aircraft.
Institutions in those fields will need stronger customer verification and transaction monitoring. Ownership transparency is also being tightened: EU companies must register their ultimate beneficial owners, with a standard ownership threshold of 25%. In more complex corporate structures, that threshold can be reduced to 15%. Trusts, foundations, and some non-EU entities doing business in the EU will also face tougher disclosure rules.
What users and exchanges may watch before 2027
Although the rules do not apply until July 2027, exchanges are likely to begin preparations earlier. The source highlights several areas to monitor: KYC policy updates on trading platforms, possible privacy coin delistings, onboarding changes, extra compliance measures tied to MiCA, and implementation progress around the Travel Rule.
For the European market, the regulation changes how regulated platforms handle identity checks, asset services, and transaction monitoring. The timeline is already fixed: July 10, 2027.