European Union suggests Crypto companies should face stricter due diligence regulations


Upon approval, the new regulations would mandate that cryptocurrency companies do due diligence on all transactions with a value of $1,090 or more.

The European Council and Parliament have agreed to some parts of a new anti-money laundering package that would impose stricter regulations on cryptocurrency businesses, but it is still early. The lawmakers’ statement on Thursday claimed that the proposed regulations will apply to “most of the crypto sector” and mandate consumer due diligence procedures for crypto companies.

When clients want to handle transactions worth more than €1,000 ($1,090), crypto businesses are required under the temporary agreement to do due diligence. The statement also said that it incorporates safeguards to reduce potential issues with transactions using self-hosted wallets.

The European Parliament must be consulted before the agreement can be finalized. After being agreed, the texts must be officially adopted by the Council and the Parliament before they can be published in the EU’s Official Journal and put into effect, according to the statement.

Additionally, the European Banking Authority expanded its regulations on risk factors for money laundering and terrorist funding to include the cryptocurrency industry on Tuesday.

In today’s announcement, Belgian Minister of Finance Vincent Van Peteghem noted that the interim agreement is a component of the new anti-money-laundering system that the European Union is implementing. “This will make sure that criminal organizations, terrorist groups, and fraudsters can’t use the financial system to justify the money they steal.”

The EU’s Markets in Crypto Assets (MiCA) law, which was formally enacted last year, clarified the boundaries and terminology of crypto regulation.

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