EU and Parliament reach consensus on more stringent regulations for due diligence by cryptocurrency companies
The European Council and Parliament have reached a preliminary agreement to impose stricter regulations on cryptocurrency firms in order to strengthen anti-money laundering measures within the industry.
Under the new rules, cryptocurrency firms will be required to conduct more thorough customer checks, particularly for transactions exceeding €1,000 or $1,090. The objective is to prevent the use of cryptocurrencies for illicit activities. The regulations also place a specific emphasis on self-hosted wallets, which are managed by users themselves rather than a company.
It is important to note that this agreement is not yet final and still requires approval from the European Parliament. Once approved, the Council and Parliament will officially adopt the rules, which will then be published and enforced.
Vincent Van Peteghem, the Finance Minister of Belgium, stated that these new regulations are part of the European Union’s efforts to combat money laundering. The goal is to prevent criminals and terrorists from utilizing the financial system to conceal their illicit funds.
In addition to these developments, the European Banking Authority recently expanded its guidelines on money laundering and terrorist financing risk factors to include the crypto sector.
These measures are part of the EU’s ongoing efforts to regulate and clarify the rules surrounding cryptocurrencies, as demonstrated by the passing of the Markets in Crypto Assets (MiCA) regulation last year.
In related news, the European Central Bank has announced plans to monitor banks’ strategies regarding climate and cryptocurrencies.
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