Commercial Encryption Restrictions May No Longer Be Associated with Licensed Encryption Companies

According to reports, according to the latest anti money laundering bill of the European Parliament, commercial encryption restrictions may no longer need to be associated with licensed encryption companies. After industry opposition, policymakers have reverted to using the old version of the text. In the latest version of the bill, the maximum value of cash transactions for commercial payments is 7000 euros, while the maximum value of encrypted transactions involving pseudonymous wallets is 1000 euros. The text of the bill allows exceptions to the cash threshold of 7000 euros for interpersonal payments, except for deposits in real estate, luxury goods, or financial institutions.  

The final text of the EU Anti Money Laundering Act increases the encrypted payment limit for self hosted wallets to 7000 euros

In recent news, it has been reported that the latest anti-money laundering bill of the European Parliament may change regulations related to commercial encryption. After initial pushback from the industry, policymakers have reverted to using an older version of the text that is now crafting the latest version of the bill.

The Latest Version of the Bill

According to the new version of the bill, commercial payments can be made with a maximum value of 7,000 euros without any restrictions involving encryption. However, for encrypted transactions involving pseudonymous wallets, the maximum value has been limited to just 1,000 euros. It is worth noting that the text of the bill permits exceptions to the cash threshold of 7,000 euros for interpersonal payments, except for deposits in real estate, luxury goods, or financial institutions.
This new regulation is significant as it may loosen the current restrictions on the use of encryption by business entities. Thus, commercial encryption may no longer need to be associated with licensed encryption companies.

Opposition to the Bill

There has been industry opposition to the bill, with some claiming that the proposals may hamper anti-money laundering efforts. Additionally, they say that the rules may undermine the use of privacy-preserving pseudonyms, leading to increased security vulnerability and further expanding possibilities for violent crime.

Exceptions to the Rule

In order to address some of these concerns, policymakers have included exceptions allowing for cash transactions above 7,000 euros. Interpersonal payments are exempt from this rule, and in such instances, businesses can use encryption without being associated with licensed encryption companies. Exceptions are allowed in cases such as real estate, luxury goods, or financial institutions, where large cash transactions may be necessary.

Conclusion

The latest anti-money laundering bill of the European Parliament amends the use of commercial encryption restrictions. However, it is essential to note that industry opposition has led policymakers to revert to an older version of the text, allowing for exceptions and ensuring that anti-money laundering efforts remain a priority.
Ultimately, this new regulation is salient as it may lead to the relaxation of current restrictions on the use of encryption by business entities, hence benefiting the industry. Nonetheless, there have been valid counter-arguments on this subject, and policymakers will continue to closely monitor the situation and take action as required.

FAQs

Q: Will the new bill affect the privacy of pseudonymous wallets?
A: The new anti-money laundering bill of the European Parliament may limit transactions involving pseudonymous wallets to 1,000 euros and increase security vulnerabilities.
Q: What are the exceptions to the new bill limiting commercial payments to 7,000 euros?
A: Interpersonal payments are exempt from the commercial payments limit of 7,000 euros. Exceptions are permitted in transactions involving large sums of cash in real estate, luxury goods or financial institutions.
Q: Will the new bill impact business industries in Europe?
A: The new regulation may relax current restrictions on commercial encryption, benefiting businesses. However, there has been opposition from the industry, and policymakers will continue to monitor the situation closely.