EU Bans Cash Payments Over €10,000 and Imposes ID Rules for Bitcoin Transactions by 2027

• Public debate rose after claims of strict EU cash limits and complete identity checks for Bitcoin.
• Later clarifications noted oversight targets service outlets, not personal wallets, though scrutiny increases.

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A tweet from the crypto-focused account named Simply Bitcoin sparked wide attention after claiming the European Union had agreed to ban cash payments above €10,000 and require identification for every Bitcoin payment starting in 2027.

The Tweet suggested a direct threat to financial privacy and compared policy direction to restrictions on personal freedom. 

A later comment from Simply Bitcoin clarified that a cash limit of €10,000 is part of anti-money laundering regulations, and that identification rules apply to crypto service providers rather than to every on-chain transfer. The account stated that overall policy direction still leaned toward stronger oversight of financial movement.

Patrick Hansen, a crypto analyst, entered the exchange to correct the interpretation spread online. Hansen stated that the regulation known as AMLR does not prohibit self-custody or personal wallets. Hansen repeated earlier explanations, noting that the regulation focuses on providers that handle transfers on behalf of users.

Regulatory Structure Under MiCA

MiCA, officially known as Regulation (EU) 2023/1114, was approved on May 31, 2023. This law created a single set of rules for companies that issue or provide services related to crypto assets across the European Union. It also covers payments made through tokens, including Bitcoin.

Service providers must get a license to operate within the Union. The authorities introduced MiCA as a legal framework for markets dealing with digital assets.

The European Banking Authority, European Insurance and Occupational Pensions Authority, and ESMA issued guidance dated 6 October 2025, warning consumers that crypto-assets remain risky even under regulated providers. The authorities highlighted exposure to sudden value shifts and operational hazards linked to industry actors.

Under Regulation (EU) 2023/1113, known as the Transfer of Funds Regulation (TFR) , which applies to crypto-asset service providers, they must collect sender and recipient information for crypto transfers. The goal is to stop money laundering and the funding of harmful networks through digital assets.

Service Provider Oversight Inside the Union

MiCA requires permission for service outlets that offer payment or storage services that include tokens meant for exchange or to keep value safe. Market participants working within the union must comply with consumer disclosures, conflict-of-interest handling, and transparency requirements. The framework aims to create uniform conditions among outlets servicing buyers of crypto-assets.

A further element blocks evasion through foreign registration. Any company serving clients within the Union must comply with Union regulations, regardless of its location. European authorities aim to close regulatory gaps arising from jurisdictional differences while maintaining legal clarity for consumer-facing services.

Regulators will impose strict rules on service providers who handle cryptocurrency funds, including Bitcoin payment services. The rules will force these providers to check customers’ identities, collect necessary information, and file reports. The whole package aims to track money flows and curb illegal financial activity using digital assets.

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