European Banking Authority (EBA) Proposes Guidelines for AML/CFT Compliance
The European Banking Authority (EBA) has launched a public consultation on proposed guidelines aimed at enhancing anti-money laundering (AML) and combating the financing of terrorism (CFT) standards within the crypto industry. These guidelines, released on November 24, address the challenges faced by crypto-asset service providers (CASPs) and payment service providers (PSPs) in complying with AML/CFT regulations.
EBA’s Proposed Guidelines for CASPs and PSPs
The EBA has identified gaps in the current regulatory framework governing AML/CFT compliance among crypto providers. In response, they have proposed new guidelines that emphasize a unified approach to strengthen the regulatory environment. The guidelines recommend measures such as enhancing interoperability of protocols and obtaining information on self-hosted addresses to improve traceability and identification of crypto transfers.
The guidelines set a threshold of €1000 for scrutinizing self-hosted addresses, although the frequency of assessment remains unspecified.
Regulatory Focus Amid Binance’s Challenges
The EBA’s move comes at a time when regulatory bodies worldwide are grappling with balancing innovation and safeguarding against financial crimes in the crypto industry. In a recent development, Binance, the world’s leading cryptocurrency exchange, faced sanctions from the Department of Justice (DoJ) for alleged violations of AML laws.
Binance’s CEO Changpeng Zhao resigned from his position and personally entered a guilty plea to charges related to neglecting to establish an effective anti-money laundering system.
Hot Take: EBA Takes Steps Towards a Secure and Regulated Crypto Landscape
The EBA’s proposed guidelines for AML/CFT compliance in the crypto industry represent a pivotal step in achieving a balance between innovation and regulatory requirements. The guidelines aim to create a more secure and regulated crypto landscape by addressing the evolving challenges faced by CASPs and PSPs. The ongoing efforts of regulatory bodies like the EBA reflect their commitment to adapt regulatory frameworks to the dynamic nature of the crypto industry.
Source: Coingape
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