The European Banking Authority (EBA) Calls for Improved AML/CFT Standards Compliance for Crypto Providers
The European Banking Authority (EBA) has released a consultation paper highlighting the inadequacy of existing regulations governing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards compliance for crypto providers. The EBA is inviting interested parties to provide comments on the paper until Feb. 26.
The Proposal to Enhance Measures for Detecting Missing or Incomplete Information
The consultation paper proposes repealing the 2017 Joint European Supervisory Authorities (ESAs) Guidelines and streamlining procedures to manage fund transfers lacking essential information within the regulatory framework. Crypto Asset Service Providers (CASPs) would be required to obtain and maintain information on self-hosted addresses, verify ownership or control of the address by the CASP customer, and ensure individual identification of crypto asset transfers.
These rules would apply when the transfer amount from a self-hosted account exceeds 1,000 euros, although the timeframe is not specified.
Steps Toward Regulation in Europe
This development follows the endorsement of the DAC8 directive by European lawmakers, granting tax authorities oversight and regulation powers over cryptocurrency transactions in the EU. These initiatives contribute to comprehensive monitoring capabilities for transactions conducted within the region, representing significant progress for the industry as a whole.
Hot Take: European Banking Authority Urges Stronger AML/CFT Compliance in Crypto Sector
The European Banking Authority (EBA) has identified shortcomings in current Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards compliance for crypto providers. With its consultation paper, the EBA aims to enhance measures for detecting missing or incomplete information in fund transfers. The proposal includes requirements for Crypto Asset Service Providers (CASPs) to obtain and maintain information on self-hosted addresses, verify ownership of crypto asset transfers, and ensure individual identification. This move toward stricter regulations follows the endorsement of the DAC8 directive, which empowers tax authorities to oversee and regulate cryptocurrency transactions in the EU. These developments signal progress in monitoring capabilities and regulation within the European crypto sector.
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