#EUPrivacyCoinBan

The new anti-money laundering law of the European Union (EU) has significant implications for the cryptocurrency sector. The AML/CFT reform package aims to extend existing regulations to more comprehensively cover cryptocurrency service providers (CASPs) and transactions involving cryptocurrencies.

* Extension of AML/CFT obligations: The new rules extend customer due diligence (CDD), transaction monitoring, and reporting of suspicious activities obligations to CASPs, aligning them more closely with traditional financial institutions.

* Funds Transfer Regulation (TFR): This regulation, part of the AML/CFT package, ensures the traceability of cryptocurrency transfers, requiring CASPs to collect and provide information about the sender and the beneficiary, regardless of the transaction value. This aims to combat anonymous transactions, although peer-to-peer (P2P) transfers between unhosted wallets are exempt.

* End of anonymity for hosted wallets: The EU seeks to ban anonymous cryptocurrency transactions for hosted wallets offered by external service providers, making it more difficult to use cryptocurrencies for illicit purposes.

* Regulation of the Cryptocurrency Market (MiCA): Although it is separate legislation, MiCA complements the AML/CFT package by establishing a regulatory framework for the issuance and trading of cryptocurrencies, as well as for CASPs, including licensing and oversight requirements.

* Supervision by AMLA: The new Anti-Money Laundering and Counter-Terrorism Financing Authority (AMLA) will have a supervisory role, including over high-risk entities in the cryptocurrency sector, ensuring a more consistent application of the rules.

* Limit for occasional transactions: Occasional transactions involving cryptocurrencies with a value equal to or greater than €1,000 will be subject to due diligence measures.