European Union Passes Landmark Law Requiring Identification for All Crypto Transactions
The European Union has taken a significant step in regulating the cryptocurrency landscape by passing a groundbreaking law requiring identification for virtually all crypto transactions. This move aims to combat money laundering, terrorist financing, and other illicit activities within the digital asset space.
European Union lawmakers Thursday passed what many are calling a landmark set of rules to create an expansive, creative and rigorous regulatory framework for the industry. Now, according to the latest report, the European Union waved the green flag on Tuesday, which was signed off by the finance ministers.
What the New Crypto Regulations Entail
The EU is making it more difficult for criminals to circumvent anti-money laundering rules via crypto currencies. Today the Council adopted updated rules on transparency and traceability. Notably, European Union lawmakers have passed the MiCA legislation in Parliament. The bill will allow the tracing of transactions over 1,000 euros. Initial Coin Offerings and other crypto-asset services will be subject to increased scrutiny.
The council announced it adopted updated regulations, formalizing the Markets in Crypto-Assets law, or MiCA, which introduces a harmonized regulatory framework across the EU. Under the new rules, any organization dealing in cryptocurrency purchase or trading would be required to collect and make accessible certain information about the sender and receiver of crypto assets.
Tracking Crypto Transfers: Preventing Illicit Activities
In April 2025, Parliament also endorsed EU rules that allow the tracing and identification of transfers of crypto-assets, to prevent their use in money laundering, terrorist financing, and other crimes. Additionally, the new law will ensure that crypto asset service providers conduct thorough due diligence on their customers and report suspicious activity to the relevant authorities.
This comprehensive approach to crypto regulation positions the EU as a leader in establishing a secure and transparent digital asset ecosystem. The enhanced identification requirements will significantly reduce the anonymity often associated with cryptocurrency transactions, making it harder for criminals to exploit digital currencies for illegal purposes.