European Commission Proposes New Legislative Package to Ensure Full Crypto Traceability

European Commission Proposes New Legislative Package to Ensure Full Crypto Traceability

The European Commission introduced some legislative proposals on Tuesday to strengthen the European Union’s (EU) anti-money laundering and counter-terrorism (AML/CFT) rules. One part of the new proposal that stood out was the revision of the 2015 Regulation on Transfer of Funds “to trace transfers of crypto-assets.”

The Commission explained that the proposal considers “new and emerging challenges linked to technological innovation,” including “virtual currencies, more integrated financial flows in the Single Market and the global nature of terrorist organizations.”

At the center of the proposed legislation is the formulation of a new “EU-level Anti-Money Laundering Authority (AMLA).” It will be “the central authority coordinating national authorities to ensure the private sector correctly and consistently applies EU rules.”

As mentioned earlier, the proposal includes “full application of the EU AML/CFT rules to the crypto sector.” The regulatory body noted that presently, only a specific group of crypto service providers fall under the purview of the EU AML/CFT rules. The legislative proposal extended its recommendation to the entire sector, “obliging all service providers to conduct due diligence on their customers.” The European Commission argued that:

“Today’s amendments will ensure full traceability of crypto-asset transfers, such as bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing.”

European Commission to Restrict Anonymous Crypto Wallets

The proposal also noted that with the application of full EU AML/CFT rules to the crypto industry:

“Anonymous crypto asset wallets will be prohibited.”

The organization added that “anonymous bank accounts already [are] prohibited by EU AML/CFT rules.”

That said, the legislative proposal has gotten ascended and will get discussed in the European Parliament and Council. The Commission concluded its announcement noting that:

“The future AML Authority should be operational in 2024 and will start its work of direct supervision slightly later, once the Directive has [gotten] transposed and the new regulatory framework starts to apply.”

 

You can purchase crypto coins here: Buy Tokens

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$200 Min Deposit
9
  • Award-winning Cryptocurrency trading platform
  • 14 Cryptoassets available to invest in
  • FCA & Cysec regulated
$200 Min Deposit
9.8

Highly volatile unregulated investment products. No EU investor protection.

  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$100 Min Deposit
9.8
  • Trade top Cryptos such as Bitcoin, Litecoin and Ethereum plus more
  • Zero commissions and no bank fees on transactions
  • Around the clock service with support in 14 languages
$100 Min Deposit
8.5
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
Share with other traders!

Author : Azeez Mustapha

Avatar

Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.