The European Union’s banking regulatory body is making changes to its regulations to include anti-money laundering rules for companies in the crypto sector. The new directives issued by the European Banking Authority will go into effect on December 30th. The aim is to harmonize the approach of crypto-asset service providers (CASP) in the EU in the fight against financial crime. The guidelines emphasize the risks associated with crypto-asset transactions and the need for CASPs to implement effective measures to mitigate them. The EBA has been working on guidelines for CASPs since last year and is consulting on proposals and guidelines to prevent abuses in cryptocurrency transfers. The new guidelines will also apply to other credit and financial institutions that have CASPs as clients or are exposed to crypto-assets.
The EBA recently conducted a public hearing session to discuss operational guidelines for stablecoin issuers within the upcoming regulatory framework, Markets in Crypto Assets (MiCA). EU regulatory authorities, including the EBA, have been engaging in consultations on rules and guidelines for issuers and cryptocurrency companies. The EBA is developing a unified set of rules for stablecoin issuers and formulating relevant policies for supervisory authorities.
During the hearing, the EBA examined proposed guidelines for Asset-Backed Token (ART) issuers, which are cryptocurrencies that maintain their stability by referencing official currencies or assets. The focus was on internal governance, management, compliance, remuneration, and disclosure of conflicts of interest for stablecoin issuers. The EBA emphasizes the importance of dialogue with the public in ensuring a positive regulatory process. Ongoing consultations will provide crucial feedback for the final regulation.
In conclusion, the European Union’s banking regulatory body is expanding anti-money laundering rules to include companies in the crypto sector. New directives will go into effect on December 30th and aim to harmonize approaches in fighting financial crime. The EBA is also working on guidelines for stablecoin issuers and conducting consultations to gather feedback. Public participation is crucial in shaping the regulatory process, and ongoing consultations will contribute to the final regulation.
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