European Banking Authority Calls for Enhanced Anti-Money Laundering Rules for Crypto Providers – Regulation Incoming?

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By BitcoinWiki News

Key Takeaways:

– The EBA aims to update AML/CFT rules for crypto providers in the EU
– A consultation paper has been released for input until February 26, 2024
– The proposals include integrating AML/CFT criteria for payment service providers and CASPs
– The goal is to promote interoperability and enhance protocol traceability
– New rules would mandate CASPs to obtain and retain information on self-hosted addresses
– Requirements would be triggered when the transfer amount from the self-hosted account exceeds €1,000
– The updated guidelines are expected to take effect on December 30, 2024
– The EU has also strengthened regulations for stablecoin cryptocurrencies, including addressing asset-backing and stability risks
– The EU has adopted the Eighth Directive on Administrative Cooperation (DAC8) for crypto-asset service providers to report client transaction information to EU tax authorities
– DAC8’s provisions work in conjunction with MiCA and anti-money laundering rules
– Under MiCA, cryptocurrency companies and exchanges are obliged to obtain licenses for operating within the EU and issuers of stablecoins must maintain appropriate reserves


– European Banking Authority (EBA) aims to update AML/CFT rules for crypto providers
– Consultation paper outlines proposed guidelines for AML/CFT criteria for payment service providers and crypto asset service providers (CASPs)
– New rules would mandate CASPs to obtain and retain information on self-hosted addresses and ensure traceability of crypto asset transfers
– EU also fortifying regulations for stablecoin (fiat-pegged) cryptos, including requirements for stablecoin reserves and robust liquidity monitoring procedures
– EU has adopted the Eighth Directive on Administrative Cooperation (DAC8) for crypto-asset service providers to report certain information about clients’ transactions to tax authorities
– DAC8’s crypto provisions designed to work with MiCA and anti-money laundering rules under the Transfer of Funds Regulation (TFR), which require cryptocurrency companies and exchanges to obtain licenses and maintain appropriate reserves.

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