European Union: Cash ban on transactions and ID requirement for crypto transfers
- The EU bans cash transactions over 10,000 euros and requires proof of identity for all commercial crypto transfers.
- Anti-money laundering reforms focus on exchanges and intermediaries to prevent illegal flows of money in the EU.
The European Union is introducing new financial regulations that limit cash payments to a maximum of 10,000 euros to increase transparency and combat money laundering. The move is part of a broader effort to strengthen financial supervision and make large monetary transactions traceable in all member states.
VERY CONERNING:
The EU just banned cash payments over €10,000 and will require ID for every Bitcoin transaction starting 2027.
They’re criminalizing privacy. pic.twitter.com/KIuWWaQ5J0
— Simply Bitcoin (@SimplyBitcoin) November 9, 2025
From 2027, commercial transactions over €10,000 will be banned across the EU – but member states can set lower limits. Payments between 3,000 and 10,000 euros must be documented and reported to the national tax authorities. The measures are intended to prevent “black money transactions” and money laundering.
The new regulations also extend to digital currencies and require identity verification for Bitcoin and other crypto transactions. The move is in line with the global trend towards regulating anonymous digital currencies. The regulations are intended for crypto platforms and professional intermediaries, not for direct peer-to-peer transactions between investors.
Identity verification for transfers over 1,000 euros
The authorities also want to ban anonymous wallets and private coins such as Monero and Zcash by 2027. Service providers must verify the identity of people who send more than 1,000 euros via self-custody wallets. These rules aim to provide greater oversight of crypto transfers.
The European Anti-Money Laundering Authority will oversee high-risk entities, including major crypto service providers with high transfer volumes. According to EU regulations 2023/1113, fiat and crypto transfers require companies to collect and store information about the sender and recipient. According to authorities, these measures help to track money flows and prevent illegal financial flows in member states.
Critics argue that the regulations violate financial privacy because mandatory identification can limit personal control over money. Proponents emphasize that these rules help stop illegal financial activities and keep the European financial system safe. They emphasize that the rules are important as digital currencies become more widely used in member countries.
New transparency measures are intended to curb illegal flows of money
The Anti-Money Laundering Regulation clarifies that the rules for cryptocurrencies and cash focus on exchanges and intermediaries, not on peer-to-peer payments between people. This approach supports the overarching goal of reducing untraceable flows of funds in the EU.
The authorities explain that these reforms will improve transparency in the movement of fiat money and cryptocurrencies. By linking cash reporting to financial authorities and crypto audits, the EU aims to ensure that all member states follow similar surveillance rules, making it much harder for illicit money to flow through the single market undetected.
Experts warn that stricter reporting requirements could slow innovation and make compliance more expensive for service providers. Still, regulators emphasize that these steps will strengthen people’s trust in digital financial systems and protect against fraud, terrorist financing and other financial crimes across the bloc.
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