From cash to the digital euro: EU launches a comprehensive reform of financial oversight

UkrAgroConsult

The EU has begun shaping a new financial control framework that covers cash operations, cryptocurrency transfers, and the concept of a digital euro. Experts note that the key trend is the “digitalisation of money” and the strengthening of financial flow monitoring, although the regulatory changes consist of several distinct components.

The current rules for transporting cash remain unchanged: amounts from €10,000 must be declared when crossing EU borders. At the same time, the Union is introducing a single €10,000 cap on large cash payments in commercial transactions. Member states may set even lower thresholds. These rules are part of a new anti-money laundering (AML) package adopted in spring 2024. The main provisions will take effect after a transition period — approximately from 2027.

Cryptocurrency operations will be regulated separately. The €1,000 threshold will apply exclusively to transactions involving digital assets. Under the AML package and the Transfer of Funds Regulation (TFR), crypto service providers will be required to conduct customer identification (KYC) for transactions of €1,000 or more, including transfers to self-hosted wallets. This is not a ban, but a transparency and oversight requirement.

In parallel, the ECB and the European Commission continue the preparatory phase for a potential introduction of the digital euro. A tentative limit of €3,000 for holding funds in digital form is being discussed, but no final decision on the launch has been made. The goal is to assess the technological, economic, and regulatory implications of such a step for financial stability.

Overall, the European Union is focusing on strengthening anti-money-laundering mechanisms, increasing transparency in cash and crypto operations, and building conditions for the development of the digital euro — without introducing new barriers within the single market.

Tags: EU