The European Union Will Expand Anti-Money Laundering Laws To Cover Cryptocurrency Assets.
- Posted on January 17, 2024 11:55 PM
- Cryptocurrency Exchanges News
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European Union-based crypto firms will need to comply with new legal regulations under the 'fight against financial crimes' framework.
The European Union has expanded its Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT) laws to include European-based crypto companies, following the decision of market regulators. According to the statement by the European Banking Authority (EBA) on January 16, the amended law aims to assist crypto asset service providers (CASP) in assessing the risks of financial crimes related to their 'customers, products, delivery channels, and geographical locations.' The law stipulates that crypto firms must implement measures to combat financial crimes, including the use of 'blockchain analysis tools.' The new regulation will take effect from December 30. The EBA stated that these latest regulations are a 'significant step' in the EU's fight against financial crimes, making the laws for crypto firms 'consistent' in preventing money laundering and the financing of terrorism across the EU.
We have extended our Guidelines on money laundering (ML) and terrorist financing (TF) risk factors to #crypto-asset service providers (CASPs).
— EU Banking Authority - EBA 🇪🇺 (@EBA_News) January 16, 2024
🏹Aim: help CASPs identify these risks by providing a non-exhaustive list of different factorshttps://t.co/YCHJdOGvj2 pic.twitter.com/jTeDNIhX9f
The updated law will provide guidance for firms holding or servicing cryptocurrencies regarding the specific risks associated with cryptocurrency. The guide for assessing financial crime risks will warn crypto firms to consider potential risks related to features enhancing anonymity, decentralized wallets, decentralized platforms, and products allowing transfers between companies and such services. The EU completed regulations last year, including the Funds Transfer Regulation (ToFR) regulating cryptocurrency transfers and the Markets in Crypto-Assets (MiCA) regulations covering the overall cryptocurrency market. MiCA will come into effect in December, protecting investors; however, EU member states can optionally apply an 18-month transitional period for CASPs to allow platforms to operate without a license during this period.
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