The European Parliament has adopted new regulations formally introducing due diligence requirements for crypto companies to combat money laundering.
The European Parliament on Wednesday voted to adopt a set of laws that partially strengthen the “.“Due diligence measures and customer identity verification” also includes so-called crypto asset managers. They must also report any suspicious activity to the authorities.
As previously reported by The Block, the new law will impact crypto asset service providers (CASPs) such as centralized cryptocurrency exchanges, as well as a number of other institutions, including gambling services. report.
Patrick Hansen, EU strategy and policy director at Circle, said the vote was expected. post At X.
“This package will also be formally adopted by the Council of the EU and will be applied in three years,” Hansen said.
rumor
Last month, Hansen Error exposed Rumor has it that the new law will ban anonymous cryptocurrency wallets and self-custodial payments. Hansen said the new law applies to CASPs that are already regulated under MiCA (Crypto Asset Market Regulation).mica is regulatory framework Proposed by the European Union to govern digital assets and their markets, it is expected to come into force in June 2023 and be fully applied by the end of the year.
“These CASPs must follow standard KYC/AML procedures such as customer due diligence (CDD),” Hansen said. post. “This is not new as all cryptocurrency exchanges and custodial wallet providers within the EU are already subject to these obligations under the current AMLD5.”
Overall, Hansen said the final version is a “great accomplishment” for the crypto industry.
“Previous versions of the proposed AMLR suggested a more stringent approach, meaning self-custodial originator/beneficiary KYC, but thanks to industry efforts, we now have a range of options. A risk-based approach was ultimately agreed upon,” Hansen said.
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