The EU continues to shape the future of crypto, and other regions will follow suit
Parliament and the European Council have consented to extend parts of the European Union’s Anti-Money Laundering (AML) and Counter-Terrorist Financing law to include the cryptocurrency market.
The agreement includes most of the crypto industry, requiring cryptocurrency service companies to review and verify details about their clients and report any suspicious activities. The new deal states these companies must inspect all transactions costing €1,000 ($1,090) or more. The interim law also includes measures to reduce the risks associated with self-hosted wallets.
Lawmakers have put certain checks in place for crypto asset services when relationships involve transactions between different countries, requiring them to closely observe the business associations of affluent individuals.
The agreement also gives unique capacities to Financial Intelligence Units, authorizing them to acquire important financial and administrative facts more efficiently, such as tax data, funds, frozen assets due to financial liabilities and crypto transfers.
The new provisional AML law was among the legislative proposals first submitted on July 20, 2021. The Markets in Crypto-Assets Regulation (MiCA) will oversee the crypto markets in all EU member states. Its goal is to reinforce the EU’s battle against money laundering and financing terrorism. Before the law takes effect, it must be formally approved by each member state and the European Parliament.
On January 16, the EU financial watchdog, the European Banking Authority, amended the regulations preventing money laundering to involve crypto companies. EU crypto companies must now determine the chances of them being entangled in financial crimes by investigating their customers, the products offered, how they’re delivered and their locations.
