Under the new laws, EU CASPs will need to perform customer due diligence on transactions originating from self-custodial wallets for transactions below 1000 EUR, and implement additional KYC measures for transactions above 1000 EUR. The laws further regulate the operation of no-KYC custodial software service providers and the use of privacy coins, effectively banning CASPs from offering privacy assets. Self-custodial software and hardware providers are exempt from the regulations.

The resolution, adopted by the European Parliament on wednesday, assumes that “[t]he anonymity associated with certain electronic money products exposes them to money laundering and terrorist financing risks,” and “[t]he anonymity of crypto-assets exposes them to risks of misuse for criminal purposes.”

While lawmakers seemed to have no issues putting numbers to overall money laundering activity in the original proposal – ranging between 2-5% of global GDP – as well as to their own inefficiencies – almost 99% of criminal profits escape confiscation – those looking for numbers corroborating “the increasing use of crypto-assets (such as Bitcoin) for money-laundering purposes” are left with a link to Investopedia, explaining what Bitcoin is.