EU Provisionally Approves Stricter AML Rules for Crypto Sector, Targets Transactions Over $1,090
The European Council and Parliament have reached a provisional agreement on key aspects of a new anti-money laundering (AML) package, signaling tighter regulations for cryptocurrency firms.
The announcement, made on Thursday, outlined that the proposed rules would encompass “most of the crypto sector” and impose stricter due diligence requirements on crypto companies regarding their customers.
As per the provisional agreement, cryptocurrency firms would be obligated to conduct due diligence procedures when customers intend to carry out transactions exceeding €1,000 ($1,090). The agreement also introduces measures aimed at mitigating risks associated with transactions involving self-hosted wallets, as stated in the official release.
Before coming into force, the deal must receive approval from the European Parliament. The statement highlighted that if the Parliament gives its nod, both the Council and Parliament would need to formally adopt the texts, which would then be published in the EU’s Official Journal.
Adding to the regulatory landscape, the European Banking Authority expanded its guidelines on money laundering and terrorist financing risk factors to include the cryptocurrency sector earlier this week.
Vincent Van Peteghem, the Belgian Minister of Finance, emphasized that the provisional agreement forms part of the EU’s new AML system. He stated, “This will ensure that fraudsters, organised crime, and terrorists will have no space left for legitimising their proceeds through the financial system.”
It’s noteworthy that the European Union had officially passed the Markets in Crypto Assets (MiCA) regulation last year, providing increased clarity on the scope and definitions of cryptocurrency regulation within the region. As a matter of fact, a new study by Kaiko shows that Europe’s cryptocurrency market is going through a big positive change, which reflects a major shift in how people in the region use and trade cryptocurrencies.
Over the last year, Bitcoin has become the top choice for European traders. They are now doing more trades using regular money instead of special digital currencies tied to the euro. The report also talks about how new MiCA rules are making things clearer for everyone. These rules are not just helping people understand better, but are also encouraging more investment and trading, as it shows.
The report also mentions a big increase in trading using euros. In the last month, the trading volume reached a high of €16 billion (around $17 billion), a significant amount to consider.
In conclusion, there is no doubt that Europe is embracing cryptocurrency, and with new rules in place, it’s paving the way for a brighter and more inclusive financial future for everyone in the region.
