According to Cointelegraph: Under a provisional agreement, the European Council and Parliament have decided to extend the European Union’s Anti-Money Laundering (AML) and Counter-Terrorist Financing laws, now encompassing the cryptocurrency industry. This decision follows the EU banking watchdog's recent amendment of AML guidelines for crypto firms.
As per the new agreement, cryptocurrency service providers will be required to validate their customers' details and flag any suspicious activities. Any transactions exceeding the value of €1,000 ($1,090) will be subject to scrutiny. Additionally, this provisional law proposes measures to mitigate risks associated with self-hosted wallets.
Special checks are being established for crypto asset service providers involved in cross-border transactions. Furthermore, the provisional agreement broadens the authority of Financial Intelligence Units, empowering them to access pertinent financial and administrative details swiftly, including tax information, funds, frozen assets related to financial penalties, and cryptocurrency transfers.
This provisional AML law is part of the Markets in Crypto-Assets Regulation (MiCA), introduced on July 20, 2021. This forthcoming regulation seeks to fortify the EU's stance against money laundering and terrorism financing across all member states. For its implementation, the law must be officially adopted by the European Parliament and individual member states.
The European Banking Authority, the EU's financial monitor, recently updated its money laundering prevention rules encompassing cryptocurrency firms. As a result, EU-based crypto companies are now required to assess their vulnerability to financial crimes, scrutinizing their customer demographics, products, delivery methods, and geographic locations.