The European Council and Parliament have reached a provisional agreement on implementing stricter regulations for cryptocurrency firms in order to strengthen anti-money laundering measures within the sector.
Under the new rules, cryptocurrency firms will be required to adhere to more stringent guidelines aimed at preventing the illicit use of cryptocurrencies. These measures, announced on Thursday, will necessitate closer scrutiny of customers, particularly for transactions exceeding €1,000 or $1,090. The focus will be on ensuring that cryptocurrencies are not being utilized for illegal activities, with a specific emphasis on self-hosted wallets managed by users rather than companies.
While this agreement is still pending final approval by the European Parliament, once sanctioned, the Council and Parliament will officially adopt the rules, leading to their publication and enforcement.
In a related development, the European Banking Authority recently expanded its guidelines concerning money laundering and terrorist financing risks to encompass the crypto sector. Vincent Van Peteghem, the Finance Minister of Belgium, highlighted that these new regulations form part of the EU’s strategy to combat money laundering and prevent criminals and terrorists from exploiting the financial system to conceal illegal funds.
Last year, the EU introduced the Markets in Crypto Assets (MiCA) regulation to provide clarity on cryptocurrency rules. The ongoing efforts to monitor banks’ climate and crypto strategies by the European Central Bank further underscore the commitment to enhancing regulatory oversight within the financial sector.