The document was made public by MPs from the German Pirate Party, opponents of the ban.

According to the draft, anonymous payments exceeding 3,000 euros will be banned in private payments for commercial purposes. In commercial transactions between entrepreneurs or legal entities, payments of more than 10,000 euros would be prohibited.

5 altcoins at risk of being removed from Binance! 5 altcoins at risk of being removed from Binance!

If adopted in full, this ban will not apply to hardware providers or non-custodial wallet providers. This is because they do not have access to or control over users' crypto assets.

Under this law, deposits/withdrawals from centralized exchanges will only be allowed on sites regulated by EU countries. Service providers will be required to identify the customer before opening a crypto wallet and account.

For the draft to become law, the European Parliament and the European Commission must first adopt it. According to the draft, measures to combat anonymous payments will come into force three years after the document is approved.

Law firm Dillon Eustace believes that the law could come into force earlier than this date.