The European Council and Parliament Reach Agreement on Stricter Rules for Cryptocurrency Firms
The European Council and Parliament have reached a provisional agreement on a new anti-money laundering package that will impose stricter rules on cryptocurrency firms. The agreement states that the new rules will apply to “most of the crypto sector” and will require crypto companies to conduct due diligence on their customers.
Under the provisional agreement, crypto firms will be required to perform due diligence when customers plan to process transactions worth at least €1,000 ($1,090). The agreement also includes measures to mitigate risks related to transactions involving self-hosted wallets.
The agreement must now be presented to the European Parliament for approval before it can be formally adopted and enter into force.
European Banking Authority Extends Guidelines on Money Laundering and Terrorist Financing Risks
In addition to the agreement reached by the European Council and Parliament, the European Banking Authority (EBA) has extended its guidelines on money laundering and terrorist financing risk factors to the cryptocurrency sector. This move further emphasizes efforts to combat financial crimes in relation to cryptocurrencies.
Belgian Minister of Finance Supports Stricter Rules as Part of EU’s AML System
Vincent Van Peteghem, Belgian Minister of Finance, expressed support for the provisional agreement, stating that it is part of the EU’s new anti-money laundering system. He believes that these rules will help prevent fraudsters, organized crime, and terrorists from using the financial system to legitimize their proceeds.
Hot Take: New Anti-Money Laundering Rules Set to Impact Crypto Firms
The European Council and Parliament have agreed on stricter rules for cryptocurrency firms as part of an effort to combat money laundering and terrorist financing. These rules would require crypto companies to conduct due diligence on their customers and implement measures to address risks associated with self-hosted wallets. The agreement now awaits approval from the European Parliament before it can be officially adopted. This development comes in conjunction with the European Banking Authority extending its guidelines on money laundering and terrorist financing risks to the cryptocurrency sector. The aim is to close any loopholes that criminals may exploit in the financial system and ensure greater transparency within the crypto industry.
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