European Parliament

European Parliament Passes Legislation to Regulate Crypto Transactions and NFTs

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The European Parliament approved a measure to enforce a €1,000 threshold on cryptocurrency transactions that cannot be traced back to the individual customer. The regulation mandates entities such as banks, crypto asset managers, real and virtual estate agents, and professional sports clubs to authenticate the identity of their customers, including their assets and company ownership, according to the Parliament.

EU lawmakers have voted to adopt new regulations

The MEP from the ECON and LIBE committees adopted their position on three draft legislations regarding the financing provisions of the EU’s Anti-Money Laundering and Countering the Financing of Terrorism policy.

The European Parliament adopted a regulation called the “single rulebook” with the aim of harmonizing financial regulation across the EU. This regulation includes provisions for conducting due diligence on customers, transparency of beneficial owners, and the use of anonymous instruments such as crypto assets. Entities such as banks, assets and crypto asset managers, real and virtual estate agents, and high-level professional football clubs will be required to verify their customers’ identities and ownership, according to the adopted texts. The regulation was adopted with 99 votes to 8 and 6 abstentions.

MicroStrategy has acquired additional Bitcoin following the sale of 9,861 BTC by the US government.

According to European Parliament Member Aurore Lalucq, the new legislation adopted by MEPs on Tuesday will specifically affect cryptocurrency trading platforms and non-fungible tokens (NFTs). Lalucq emphasized that although NFTs were not included in the new Market in Crypto-assets Regulation (MiCA), they will now be subject to anti-money laundering rules and NFT platforms must comply with these legal obligations. Lalucq further explained that the European Anti-Money Laundering Authority (AMLA) will be authorized to establish a list of high-risk platforms based outside the EU.

It is important to note that Aurore Lalucq specified that the new legislation also includes due diligence procedures for transactions carried out with unhosted wallets. She emphasized that transactions over €1,000 will only be allowed if the owner or beneficiary can be identified. In addition, she stated that the use of unregistered or unlicensed platforms and entities will be prohibited and AMLA will create a list of such entities.

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