Europe wants to fight money laundering in crypto with new guidelines

The European Union (EU) is one consultation started on amending the current anti-terrorism and anti-money laundering guidelines. The discussion is about amendments, amendments to laws and guidelines, to include crypto in current regulations.

Anti-money laundering and anti-terrorism

The European Banking Authority (EBA), an EU supervisory agency, launched a consultation yesterday. The announcement of the consultation was made in a press release brought outside. Those interested can go through this page send their criticisms and advice to the EBA. The consultation is about the current amendments to the directives that the EU wants to make. The amendments amend current money laundering and terrorism financing guidelines to include cryptocurrency.

Anonymity and crypto

The press release sheds light on a number of issues addressed by the amendments. The EBA believes that crypto makes it easy for malicious people to transfer money anonymously. Because the identity of the person behind a wallet is not known, it would be a major risk for money laundering. Terrorist organizations could also convert their assets into crypto to hide their finances. The EBA is apparently not fully aware of the public nature of blockchain technology.

With the new amendments, the EU also wants to relate the current guidelines to cryptocurrency. Crypto asset service providers (CASP), such as crypto exchanges, can base their policies on the guidelines. The amendments should thus act as instructions for crypto networks to combat money laundering more effectively. The amendments also reflect how crypto networks can adjust their terms of use to limit the risks.

Consultation open until August 31

Until August 31, advice and criticism can be given on the amendments that are being implemented. A digital public hearing will also be held on 7 June 2023. You can register via this link. All advice and criticisms provided will be published at the end of the process, unless otherwise specified. Adjustments to the amendments based on the opinions will then also be published.

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