EBA Proposes Revamp in Anti-Money Laundering Rules for Crypto Providers
Summary:
The European Banking Authority (EBA) seeks to revise existing anti-money laundering rules, specifically targeting the financing of terrorism among cryptocurrency service providers. The EBA issued a proposed outline to address shortcomings in the current European regulations and has invited public feedback until February 2024. The proposed rules mandate crypto service providers to gather and retain account details, ensure crypto-asset transfer distinguishability, and confirm account ownership. These guidelines will apply when transfers exceed 1000 euros. The new legislation is expected to take effect on December 30, 2024.
The governing body for banks in the European Union, the European Banking Authority (EBA), is set on revising the existing protocols against money laundering to gear more towards countering financing of terrorism (AML/CFT) for cryptocurrency handlers. A draft paper issued on November 24 detailed the EBA's stance that the current regulations established across Europe are not comprehensive enough to guide cryptocurrency experts in complying with AML/CFT standards. The EBA's proposed outline is aimed at addressing these shortcomings and is open for public feedback until February 26, 2024. The EBA recommends blending the AML/CFT guidelines for those who deal with digital payments and crypto-asset service handlers. Similarly, the EBA mandates crypto service providers to "improve the seamless and cross-compatible flow of data" by making their operating systems more cohesive. As part of the pending regulations, these providers will also be required to gather and retain details on self-hosted accounts, ensure the distinguishability of crypto-asset transfers, and validate the ownership or management of the address by their clientele. These preconditions would come into effect when the transferred sum of a self-hosted account exceeds 1000 euros, although the EBA did not mention whether this limit is applicable on a monthly, daily, or one-time basis. The new set of rules is expected to be implemented on December 30, 2024, post the consultation period. Previously, in the last month, the EBA rolled out an examination paper scrutinizing the proficiency of management personnel and individuals owning significant stakes in issuers of asset-correlated tokens and crypto asset service handlers. In July, the institution urged issuers of stable coins to voluntarily comply with certain "guiding principles" concerning risk assessment and shielding consumers.
Published At
11/24/2023 10:56:45 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.