EU expands anti-money laundering rules to include cryptocurrencies
Key Takeaways
- EBA expands anti-money laundering guidelines to include European cryptocurrency companies.
- The updated guidance helps CASPs assess and mitigate risks associated with financial crime.
- The EU’s comprehensive regulatory framework, ToFR and MiCA, is set to strengthen oversight and investor protection for the cryptocurrency sector.
European UnionThrough the banking watchdog, the European Banking Authority (EBA). Expanded the scope of the Anti-Money Laundering and Counter-Terrorist Financing Directives. Covers European cryptocurrency companies.
Announced on January 16th, this expansion marks the following significant changes: Integrating Crypto Asset Service Providers (CASPs) into existing financial crime regulatory frameworks.
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The updated guidance is designed to: We help CASPs identify and mitigate financial crime risks. It relates to customers, products, delivery channels and geographic locations.
Moreover, the EBA’s amendments propose that cryptocurrency companies adopt anti-financial crime measures by incorporating blockchain analytics tools. These revised The guidelines will come into effect on December 30, 2024..
The EBA considers these changes as follows: The European Union (EU) has made pivotal progress in its ongoing fight against financial crime.. It aims to Standardizing the approach for cryptocurrency companies Strengthen capacity to combat money laundering and terrorist financing.
The strengthened guidelines are Contains specific risks and guidelines related to cryptocurrency. Ensure that financial institutions that hold or provide services to crypto companies are appropriately informed and prepared.
Additionally, the guidelines Cryptocurrency companies urged to assess risk It involves anonymity-enhancing features, self-hosted wallets, decentralized platforms, and products that facilitate transfers between their services and companies.
Last year, the EU finalized a significant regulatory framework in the cryptocurrency domain, including the Transfer of Funds Regulations (ToFR), which governs cryptocurrency transfers, and the Markets in Cryptocurrency Assets (MiCA) Regulations, which encompass comprehensive investor protections.
while MiCA is scheduled to go into effect in December.EU member states can: Introduces an 18-month transition period for CASP.At this stage you can operate without a license.
The expansion of the European Union’s Anti-Money Laundering and Counter-Terrorist Financing Directives to include cryptocurrency companies is an important step toward integrating the cryptocurrency sector into the broader financial regulatory framework, strengthening supervision and ensuring strong investor protection.
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