The European Union imposes regulations against money laundering in cryptocurrencies

The European Union is about to implement regulations against money laundering (AML) that will affect cryptocurrency service providers (CASP). Starting from 2027, anonymous accounts and privacy-preserving tokens will be prohibited.

What does this mean?

- Prohibition of anonymous accounts: Credit institutions, financial institutions, and CASPs will not be able to maintain anonymous accounts or handle privacy-preserving cryptocurrencies.

- Increased supervision: CASPs operating in at least six member states will be under the direct supervision of the Anti-Money Laundering Authority (AMLA).

- Reporting obligation: Transactions exceeding 1,000 euros must be reported.

What impact will this have on the cryptocurrency sector?

- Change in the way CASPs operate: Centralized projects will need to consider the new regulatory framework when determining their internal processes and policies.

- Increased supervision: AMLA will select 40 entities for direct supervision, with at least one entity from each member state.

What's next?

- Implementation of the regulations: The EU will continue working on the details of application through implementing and delegated acts.

- Adaptation of the sector: Centralized crypto projects will need to adapt to the new regulatory framework to comply with the rules.