European Union (EU) banking authority extends Anti-Money Laundering guidance to crypto
The EU’s cryptocurrency enterprises are now subject to instructions from the banking watchdog in its “fight against financial crime.” The European Union’s Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) principles have been extended to European cryptocurrency enterprises, according to a decision by the region’s banking authority. The European Banking Authority (EBA) stated on January 16 that the updated recommendations aim to assist crypto asset service providers (CASPs) in identifying their exposure risk to financial crimes owing to their “customers, products, delivery channels, and geographical locations.”
The rules also specify how crypto businesses should modify their financial crime-fighting strategies, which may involve “the use of blockchain analytics tools,” according to the watchdog. The new standards will take effect on December 30. The EBA stated that the latest modifications are “an important step forward in the EU’s fight against financial crime” and “harmonises the approach” for crypto businesses across the union to combat money laundering and terror funding. The new rules will include cryptocurrency and crypto company-specific risks and advise for financial institutions that store cryptocurrencies or assist crypto firms.
Financial crime risk assessment guidelines is also included, and crypto enterprises are advised to address the possible dangers related with “anonymity-enhancing features,” self-hosted wallets, decentralised platforms, and products that allow transfers between the company and such services. The new rules will include cryptocurrency and crypto company-specific risks and advise for financial institutions that store cryptocurrencies or assist crypto firms. Financial crime risk assessment guidelines are also included, and crypto enterprises are advised to address the possible dangers related to “anonymity-enhancing features,” self-hosted wallets, decentralized platforms, and products that allow transfers between the company and such services.
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