The European Union has approved a new anti-money laundering framework that will take effect in July 2027. Under Regulation (EU) 2024/1624, the bloc will introduce a unified €10,000 cap on cash payments and impose stricter customer verification rules on certain crypto transactions handled by regulated firms.
Bloc-wide cash ceiling set at €10,000
Under the new framework, businesses across EU member states will no longer be allowed to accept cash payments above €10,000 for goods and services. Some countries already have similar restrictions in place, but the regulation creates a common standard across the union. Member states can still choose to apply lower limits.
The rules also require identity checks for cash transactions worth €3,000 or more. Private transfers between individuals are excluded from the measure. Bank deposits and payments processed through regulated financial institutions are also outside its scope.
Crypto firms face stronger KYC duties on certain transfers
The regulation extends AML obligations to additional sectors, including luxury goods, football clubs, crowdfunding platforms, and investment migration activities. For Crypto-Asset Service Providers operating in the EU, the changes are more specific.
Certain occasional crypto transactions valued at €1,000 or more will trigger enhanced Know Your Customer checks. Exchanges and other regulated crypto firms must collect additional customer information when those thresholds apply. The framework does not place all on-chain activity under the same standard; its focus remains on regulated intermediaries.
Anonymous crypto accounts barred, self-custody transfers exempt
The regulation also places new limits on anonymous crypto services. Regulated providers will not be allowed to offer anonymous accounts or custodial wallets where ownership cannot be identified. Services linked to anonymity-enhancing cryptocurrencies will also face restrictions, with EU authorities saying such assets make suspicious activity harder to monitor.
Self-custody users are treated differently. Direct wallet-to-wallet transfers using self-custody wallets or hardware wallets remain outside the €1,000 verification threshold. Enforcement is aimed instead at exchanges, custodians, and other regulated service providers.
AMLA to coordinate enforcement from Frankfurt
To oversee implementation, the EU has created the Anti-Money Laundering Authority, or AMLA. Based in Frankfurt, Germany, the agency will supervise major cross-border institutions and coordinate anti-money laundering enforcement across the bloc.