The European Banking Authority (EBA), the banking regulator in the EU, aims to modernize the current regulations pertaining to anti-money laundering and combatting the financing of terrorism (AML/CFT) rules concerning cryptocurrency providers.
Outlined in a consultation paper released on November 24, the EBA highlighted the insufficiency of existing European regulations in effectively ensuring compliance with AML/CFT standards among cryptocurrency providers. The proposed revisions seek to address these shortcomings, and interested parties have until February 26, 2024, to provide their comments on the suggested changes.
Of significant note, the EBA proposes the amalgamation of AML/CFT standards for payment service providers and cryptoasset service providers (CASPs). Additionally, it recommends that CASPs enhance the interoperability of their protocols to ensure seamless and standardized information transmission. The new rules suggest that CASPs should gather and maintain information regarding self-hosted addresses, verify the ownership or control of these addresses by a CASP client, and enable the individual identification of crypto asset transfers. However, the EBA didn't specify whether the €1,000 threshold for these requirements pertains to a monthly, daily, or single transaction limit.
Upon the completion of the consultation period, the updated guidance is slated to become effective on December 30, 2024.
Earlier in October, the EBA released a consultation paper evaluating the eligibility criteria for members of the governing body, shareholders, or members holding qualifying equity shares in asset reference tokens and CASP issuers.
Moreover, in July, the EBA urged stablecoin issuers to voluntarily adhere to specific "guiding principles" centered around risk management and consumer protection. These initiatives demonstrate the regulator's ongoing efforts to enhance oversight and compliance within the evolving landscape of cryptocurrency and digital assets.
