EU Enforces Cryptocurrency Regulations to Counter Money Laundering

The European Parliament has adopted new rules to strengthen due diligence and identity checks for certain categories of...

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The European Parliament has adopted new rules to increase due diligence and identity checks for crypto companies, in a bid to combat money laundering.

The new law, passed on 24 April, requires crypto-asset service providers and other entities, including gambling services, to report any suspicious activity to authorities.

Source: Patrick Hansen
MiCA is a legal framework introduced by the European Union to regulate crypto-assets and their markets. It was adopted in June 2023 and is set to be fully applicable by the end of this year.
A new agency, called the Anti-Money Laundering Authority (AMLA), has been designated to oversee the implementation of the new anti-money laundering rules in crypto.
The AMLA will be headquartered in Frankfurt, Germany. Although the law has yet to be formally adopted by the Council and published in the EU Official Journal, Patrick Hansen, Circle’s EU Policy and Strategy Lead, anticipates that it will be adopted and enter into force three years later.

In a separate post , Hansen mentioned that these CASPs will be required to follow standard Know-Your-Customer (KYC) and Anti-Money Laundering (AML) procedures such as conducting customer due diligence.

He noted that this requirement is nothing new, as all crypto exchanges and custodial wallet providers in the EU are already obligated to comply with these under existing laws.

Further reading: Dubai passes comprehensive digital asset law, new custody rules

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