This doesn't seem that much worse than American rules that have already been in place for a long, long time.
As it is, large payments or withdrawals must be reported to federal agencies, anything over $10k. This applies to cash transactions as well and the forms the IRS requires you to fill in a $10k+ cash transaction can be found here.
The biggest difference would be the impact on cash transactions and crypto transactions in the EU.
I'm pro-privacy, but a lot more crypto facilitates crime than not, so I don't really know why people would be shocked that governments would attack crypto specifically here (literally almost all ransomware uses crypto). Looks like way more of a crackdown on crypto than cash, but maybe that's just me. (On top of the fact that a lot of crypto isn't privacy-oriented. Looking at you, Bitcoin)
Two years ago USA put in rules for commercial digital transfers over $600 to be reported. Just pointing out that the EU's rules don't seem particularly draconian when weighed against already existing rules elsewhere.