The EU has announced plans to criminalise all cash payments in anticipation for the rollout of the new ‘Digital Euro’ which will be mandatory for all citizens who wish to participate in society.
Starting in January 2027, all cash transaction above €10,000 will be illegal in 27 EU states.
Crypto-newsmedia.com reports: The news, which first went viral after a tweet from the crypto outlet Simply Bitcoin, triggered public concern over potential restrictions on personal financial freedom. However, later clarifications confirmed that self-custody wallets remain untouched—the new rules target companies facilitating crypto transactions, not individual users.
MiCA and AMLR: The Backbone of EU Crypto Oversight
The legislative framework stems from the Markets in Crypto-Assets Regulation (MiCA) and the Anti-Money Laundering Regulation (AMLR). Together, they establish uniform standards for cryptocurrency companies operating within the European Union.
Under MiCA, crypto-asset service providers must obtain licenses, disclose risks, and maintain transparency in how they handle user assets. Meanwhile, AMLR requires these providers to collect sender and receiver information for every crypto transfer, echoing existing rules for banks.
Industry analysts, including Patrick Hansen, emphasize that the EU’s intent is not to ban Bitcoin, but to ensure accountability across intermediaries. The Transfer of Funds Regulation (TFR) further reinforces this by mandating strict recordkeeping and information-sharing to prevent the misuse of crypto channels.
Impact on Businesses and Users
While individual crypto users can still transact freely, businesses offering Bitcoin or stablecoin services must align with EU compliance requirements or risk being shut out of the single market. Even firms registered abroad will have to follow EU standards when serving European clients, closing a common regulatory loophole.
For the crypto industry, this signals a future of greater legitimacy but less anonymity. Investors can expect higher consumer protection standards, yet the privacy once linked with digital assets may erode as oversight deepens.
A Balancing Act Between Control and Innovation
The EU’s 2027 financial reforms mark a turning point for both cash and crypto regulation. By merging transparency with tighter surveillance, the bloc seeks to secure its financial ecosystem without stifling innovation. For crypto users, understanding the difference between service oversight and personal freedom will be crucial in navigating the next era of digital finance.