Misleading EU “Cash Ban” Claims Go Viral Following New AML Rules

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Online posts claiming that cash payments over €10,000 ($11,600) have been outlawed in the EU’s latest anti-money-laundering regulations have gone viral, despite being misleading.

In reality, the package, which is due to take effect in July 2027, imposes an EU-wide cap of €10,000 on cash payments made only to businesses in professional transactions. This is part of an EU bid to combat money laundering. Private transactions remain, however, unaffected by this rule.

The move will not criminalize “buying a car in cash,” as claimed, but is part of the EU’s attempt to close loopholes exploited for laundering money. While paying over €10,000 to a business could be illegal from 2027, Europeans can still hold as much cash as they wish and use it in daily transactions. 

Posts have also claimed that the EU’s new anti-money-laundering laws will require identification for all crypto transactions. These posts are likely referring to Travel Rule requirements that apply to crypto asset service providers licensed in the EU, which are required to exchange details with each other, again to combat money laundering. 

Self-custody wallets will likely not be affected by these laws when interacting with each other. The new framework does not set out to ban self-custody wallets or payments in cash. Nevertheless, it does indicate further tightening of traceability requirements that fuel long-running debates on privacy.