European institutions have reached an interim consensus on a set of EU regulations that will burden crypto companies with the obligation to help prevent money laundering, among other illicit activities potentially involving digital assets. The progress comes as the Union seeks to comprehensively regulate the continent’s cryptocurrency market.
Negotiators representing the key participants in the EU’s decision-making process have reached an agreement on anti-money laundering (AML) rules that will require businesses in the crypto industry to verify the identities of their customers and report suspicious transactions. In the future, Europe’s Transfer of Funds Regulation (ToFR) will also cover cryptocurrency transactions.
The regulations are yet to be finalized and approved by the relevant European institutions but the provisional deal signals an upcoming tightening for the sector. Crypto firms will have to assist financial authorities in efforts to crack down on dirty money, the European Parliament and EU Council indicated on Wednesday.
The improved oversight should ensure that crypto assets can be traced just like traditional money transfers, Reuters reported, referring to a released official statement. Quoted by the news agency, Spanish Green Party lawmaker Ernest Urtasun, who took part in the process, elaborated:
The new rules will enable law enforcement officials to be able to link certain transfers to criminal activities and identify the real person behind those transactions.
What effect, do you think, will the upcoming EU regulations have on the crypto industry? Share your opinion in the comments section below.
