How EU Reaches Provisional Agreement on Sweeping Anti-Money Laundering Measures for Cryptocurrency?
In a landmark development, European Union policymakers have reached a preliminary agreement on a comprehensive regulatory package to combat money laundering. The Anti-Money Laundering Measures for Cryptocurrency constitute a significant step in the fight against sanctions evasion and illicit financial activities.
Under the agreement, all cryptocurrency firms must conduct due diligence on their customers, particularly in transactions exceeding €1,000 ($1,090). The regulatory package establishes a single rulebook and introduces a supervisory authority overseeing the cryptocurrency sector.
The latest measures also address risks associated with transactions involving self-hosted wallets. This follows the EU’s previous efforts, including specific anti-money laundering checks on crypto fund transfers and adopting the Markets in Crypto Assets (MiCA) regulation.
The EU’s legislative process, influenced by concerns over crypto anonymizing tools like Tornado Cash and suspicions of crypto being exploited to evade sanctions by entities like Russia and Hamas, has led to a robust regulatory framework. Notably, the agreement maintains a balance, ensuring privacy-enhancing cryptocurrencies will not be outlawed.
The EU Crypto Initiative, a prominent industry body, had previously urged lawmakers to reconsider proposed restrictions on privacy-preservation tools. The agreement is crucial to the EU’s enhanced anti-money laundering system, strengthening national measures and preventing fraud, organized crime, and terrorism financing.
Belgian Minister of Finance Vincent Van Peteghem emphasized the agreement’s significance: “This agreement is part and parcel of the EU’s new anti-money laundering system. It will improve how national systems against money laundering and terrorist financing are organized and work together. This will ensure that fraudsters, organized crime, and terrorists will have no space left for legitimizing their proceeds through the financial system.”
Key Points:
• EU policymakers reach a preliminary agreement on a comprehensive regulatory package.
•Anti-Money Laundering Measures for Cryptocurrency is a significant step against sanctions evasion and illicit financial activities.
• Cryptocurrency firms mandated to conduct due diligence on transactions exceeding €1,000.
• Introduction of a single rulebook and a supervisory authority overseeing the cryptocurrency sector.
• Measures address risks in transactions involving self-hosted wallets.
• concerns over crypto anonymizing tools and suspicions of crypto misuse in evading sanctions influence the EU’s legislative process.
• Agreement maintains a balance, ensuring privacy-enhancing cryptocurrencies are not outlawed.
• EU Crypto Initiative urges reconsideration of proposed restrictions on privacy-preservation tools.
• Crucial component of the EU’s enhanced anti-money laundering system to prevent fraud, organized crime, and terrorism financing.
• The Belgian Minister of Finance emphasizes the agreement’s significance in improving national systems against money laundering and terrorist financing.
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