On 24 April 2024, the European Parliament cryptocurrency officially approved new regulations targeting money laundering in the industry. These regulations require mandatory identification and verification of customers. Covering crypto asset managers and centralized exchanges, these rules seek to improve existing Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. aims.
4/ The AMLR will apply to all CASPs (exchanges, brokers etc.) that are regulated under MiCA. These CASPs will need to follow standard KYC/AML procedures like customer due diligence (CDD) etc.
NEWS CONTINUES BELOWThis is nothing new, as all crypto exchanges & custom wallet providers in the EU are… pic.twitter.com/ZN1AsWdBpw
— Patrick Hansen (@paddi_hansen) March 24, 2024
NEWS CONTINUES BELOW
Under this legislation, crypto asset service providers are now required to conduct comprehensive customer due diligence and report suspicious activity to authorities. This step is in line with the European Union’s strategy to effectively manage digital assets and their markets.
The Crypto Asset Markets (MiCA) framework, which will come into force in June 2023, will become fully applicable by the end of the year. New anti-money laundering regulations aim to secure a transparent crypto ecosystem.
The Anti-Money Laundering and Combating the Financing of Terrorism Authority (AMLA), based in Frankfurt, Germany, will oversee these regulations and ensure compliance between CASPs and other relevant bodies.
Once the European Parliament adopts this law, the Council of the European Union must officially approve it. It will also need to be published in the EU Official Journal before entering into force. Implementation of the legislation is expected in three years.
Patrick Hansen, Circle’s director of EU strategy and policy, noted that the new CASP requirements build on the already established Anti-Money Laundering Directive 5 (AMLD5).
Previous proposals for the Anti-Money Laundering Regulation (AMLR) included stricter KYC measures for self-custody wallets. However, industry advocacy led to a revised, balanced version of this law. This version allows for multiple compatibility options, taking into account the peculiarities of the crypto world.
The European Parliament’s adoption of the new rules is seen as an important step in improving the regulatory framework of the cryptocurrency industry. This step is part of the EU’s efforts to balance financial system integrity and innovation with the expansion of the sector. The framework and new rules created by MiCA reflect the EU’s regulatory approach.
