The European Parliament passed new rules, requiring cryptocurrency businesses to conduct thorough checks to prevent money laundering, in order to combat this illegal activity.
The new laws are designed to enhance the investigation processes and identity verifications for clients, including crypto asset managers. These managers will additionally need to inform the relevant authorities about any questionable transactions.
Beginning April 24, a fresh regulation called MiCA (Markets in Crypto-Assets) will influence providers of crypto-assets, such as central exchanges for digital currencies, and additional businesses, encompassing crypto gambling platforms.
The European Union introduced MiCA (Markets in Crypto-Assets) as a regulatory system to govern the trading of digital assets. This legislation was passed in June 2023, with complete enforcement expected by the end of the year.
An new organization called the Anti-Money Laundering and Countering Financing of Terrorism Authority (AMLA) has been established to manage and monitor the rollout of the latest regulations.
The office of AMLA (Anti-Money Laundering Authority) is going to be based in Frankfurt. Nonetheless, the law has not been officially endorsed by the Council and has not appeared in the EU Office Journal for publication yet.
Patrick Hansen, Circle’s EU Strategic and Policy Director, showed eagerness for the decision’s result in a recent post on X. He noted that the proposal would then be formally approved by the EU Council and take effect three years after its approval.
In his post, Hansen stated that the CASPs need to follow established Know Your Customer (KYC) and Anti-Money Laundering (AML) practices, which include conducting thorough customer investigations.
This requirement isn’t new; crypto exchanges and custodial wallet providers based in the EU have been subject to these regulations under previous laws.
Hansen referred to the final version as a “favorable outcome” for the crypto industry. He mentioned that previous proposals of the AMLR indicated a more stringent stance, which would have required Know Your Customer (KYC) verification from the self-custody originator or beneficiary.
Yet, he acknowledged the industry’s role in promoting a risk-assessing strategy with various choices, resulting in unanimity.
Recently, the main committees of the European Parliament eliminated the 1,000 euro ($1,080) cap on cryptocurrency transactions from personal crypto wallets under the latest Anti-Money Laundering regulations.
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2024-04-25 10:34