The package of bills provides, among other things, for the creation of a single Anti-Money Laundering Authority for the bloc

European Parliament has approved the tightening of AML rules for crypto companies

19.03.2024 - 15:28

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2 min

What’s new? EU lawmakers have passed three key documents in a broad anti-money laundering legislative package that will also apply to cryptocurrencies. It will establish an Anti-Money Laundering Authority, a single set of rules for all 27 member states of the bloc, and strict regulations for crypto service providers.

Material by Cryptopolitan

What else is known? The documents were approved by the Joint Committee on Civil Liberties, Justice, and Home Affairs and the Committee on Economic and Monetary Affairs within the European Parliament.

The vote follows the adoption in January of a comprehensive Anti-Money Laundering Regulation (AMLR) project aimed at combating sanctions evasion and money laundering. It includes the creation of a single set of rules and the establishment of a supervisory body with jurisdiction over the cryptocurrency sector.

The AMLR will require crypto service providers to comply with customer verification requirements and monitor cross-border transfers and transactions using non-custodial wallets.

The broader package also calls for the creation of an Anti-Money Laundering Authority (AMLA) based in Frankfurt. Thus, on March 19, two committees of the European Parliament approved the creation of the AMLA, with 68 votes in favor and 10 against.

EU authorities have agreed to tighten controls on crypto transfers over 1000 EUR

EU authorities have agreed to tighten controls on crypto transfers over 1000 EUR

The new initiative also includes risk mitigation measures for transactions using non-custodial wallets

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Although the regulation aims to equalize requirements for all players in the financial sector, the European crypto industry is concerned that the rules for crypto service providers are stricter than for traditional institutions.

Earlier, crypto exchange OKX announced the delisting of USDT stablecoin in the European Economic Area due to the imminent adoption of a new regulatory framework in the bloc.

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