The European Parliament and EU Council have reached a provisional agreement on anti-money laundering legislation for cryptocurrencies, stipulating identity checks for transactions over 1,000 euros. While aimed at treating crypto firms and banks equally, concerns have surfaced over potential disparities in the application of these rules. This development comes amidst a broader effort to curb illegal money flows and secure the EU financial system.
EU’s Tougher Crypto Rules Spark Fairness Worries
The new anti-money laundering regulation (AMLR) requires crypto companies to verify customer identities for transactions exceeding 1,000 euros. While the intention is to align rules for both crypto firms and banks, apprehensions arise over perceived discrepancies. Crypto companies face stricter requirements, such as basic identity checks for all occasional transactions, diverging from the standards set for traditional banks. The AMLR, integral to combating fraud and illegal financing, is currently undergoing technical discussions with an anticipated approval in April.
Read more: U.S. Senators Reintroduce Digital Asset Anti-Money Laundering Bill of 2023
Experts Laud EU’s Anti-Money Laundering Deal, But Concerns Linger
The recently announced agreement on anti-money laundering legislation in the EU has garnered praise from anti-corruption experts as “a really good step forward.” The deal includes measures compelling due diligence checks for luxury goods traders, football clubs, and certain cryptocurrency sector institutions. Despite the positive reception, concerns linger regarding the strength of provisions related to identifying companies’ beneficial owners. Transparency International suggests that the deal could have been more robust in lowering the threshold for reporting beneficial owners. Experts emphasize the significance of a harmonized and coherent approach to combat money laundering across the EU.
Read more: Donald Trump Opposes CBDC, Citing Government Control Concerns
Conclusion
As the EU navigates new anti-money laundering rules for cryptocurrencies, the push for fairness in their application remains a key consideration. While the agreement is hailed as progress in combating fraud and securing the financial system, ongoing concerns about potential loopholes indicate that further refinements may be needed. The EU’s commitment to creating a more uniform regulatory environment for both crypto and traditional financial entities reflects the broader global efforts to mitigate the risks associated with illicit financial activities.
