- European Council and Parliament reach provisional agreement on new anti-money laundering (AML) package for cryptocurrencies.
- Proposed regulations impose stricter rules, requiring due diligence on transactions above €1,000.
- Emphasis on mitigating risks associated with illicit financial activities in the crypto sector.
- Additional safeguards introduced for transactions involving self-hosted wallets.
- The agreement aims to establish a comprehensive regulatory framework addressing money laundering and terrorist financing.
- Proposed regulations subject to European Parliament approval before becoming binding.
- Vincent Van Peteghem highlights the significance of preventing fraud and criminal activities through the financial system.
- EU’s commitment to maintaining financial sector integrity and preventing exploitation of digital assets for illicit purposes.
In a pivotal move to bolster the regulatory framework for cryptocurrencies, the European Council and Parliament have reached a provisional agreement on a new anti-money laundering (AML) package. The proposed regulations are set to impose more stringent rules on cryptocurrency firms operating within the European Union (EU), particularly focusing on transactions valued at or above €1,000.
Stricter Regulations and Due Diligence:
Under the provisional agreement, cryptocurrency firms within the EU will be obligated to conduct thorough due diligence on transactions involving amounts exceeding €1,000. This step aims to strengthen AML measures and mitigate the risks associated with illicit financial activities in the crypto industry.
Focus on Self-Hosted Wallets:
Additionally, the agreement introduces extra safeguards for transactions involving self-hosted wallets. This comprehensive approach seeks to establish a regulatory framework addressing concerns related to money laundering, terrorist financing, and other illicit activities within the cryptocurrency sector.
Parliamentary Approval Process:
While this provisional agreement represents a significant milestone, the proposed regulations are subject to approval by the European Parliament. The democratic process ensures a thorough review of the rules before they become binding. If endorsed, the Council and Parliament will formally adopt the texts, publishing them in the EU’s Official Journal to come into force.
Vincent Van Peteghem’s Perspective:
Vincent Van Peteghem, the Belgian Minister of Finance, underscores the agreement’s importance in preventing fraud, organized crime, and terrorist financing through the financial system. This commitment aligns with the EU’s dedication to maintaining the integrity of its financial sector and preventing the exploitation of digital assets for illicit purposes.
This recent development builds upon the EU’s ongoing efforts to establish a robust regulatory framework for cryptocurrencies, following the introduction of the Markets in Crypto Assets (MiCA) regulation last year.