It was reported in April 2022 that the European Parliament had voted in favour of the Transfer of Funds Regulation, which would outlaw anonymous cryptocurrency transactions as part of an EU anti-money laundering package.
Members of two parliamentary committees voted in favour of the new rules, which will require all transfers of crypto to include information on the source of the asset and its beneficiary, with this data being made available to the authorities.
The rules would also cover transactions from unhosted wallets, that is, wallet addresses that are in the custody of private users. However, they would not apply to person-to-person transfers conducted without a provider or among providers acting on their own behalf,
The requirements are designed to bring crypto in line with AML requirements for normal payments of over €1000. The decision to not have a €1000 minimum was made because their speed and virtual nature means that crypto transactions may circumvent existing rules.
The parliamentary committees also want the European Banking Authority to create a public register of cryptoasset service providers that may face a high risk of financial crime, including a list of non-compliant businesses. Before making cryptoassets available to beneficiaries, providers would have to verify that the source of the transfer was not subject to restrictive measures and that there were no risks of money laundering or terrorism financing.
The proposal will now go to the full Parliament and national ministers.
If you’d like to know more about how we can help you with your crypto transaction arrangements, AML crypto regulation or any other cryptoasset regulatory compliance issues, our specialist team is here to help.
Contact us today on 0207 436 0630 – or email info@thistleinitiatives.co.uk.