According to CoinDesk, the European Union's banking watchdog, the European Banking Authority (EBA), has issued guidance for crypto firms to comply with its anti-money laundering and terrorist-financing requirements. By extending the scope of its existing measures to cover crypto, the EBA aims to harmonize the approach that crypto asset service providers (CASP) across the EU should adopt to combat financial crime. The EBA highlighted the importance of CASPs being aware of the risks associated with crypto-asset transfers and implementing measures to effectively mitigate them.
Last year, the EU finalized legislation on the transfer of funds via digital assets alongside its landmark Markets in Crypto Assets (MiCA) regulatory package. The EBA has since published guidelines on risk-based supervision of CASPs and is consulting on the proposed guidelines to prevent the abuse of crypto transfers that align with recommendations from the global watchdog, the Financial Action Task Force (FATF). The EBA is also consulting on further guidance relating to internal policies and controls CASPs should have. The new guidelines address other credit and financial institutions that have CASPs as their customers or are exposed to crypto assets. Competent authorities must report their compliance with the new guidelines within two months of publishing the guidelines translated into the official EU languages. The guidelines will apply from December 30, around the time when MiCA takes full effect.