EU provisionally agrees on stricter due diligence rules for crypto firms

Quick Take

  • If approved, the proposed rules would require crypto firms to conduct due diligence on transactions worth at least $1,090.

The European Council and Parliament reached a provisional agreement on parts of a new anti-money laundering package that would impose stricter rules for cryptocurrency firms. In a statement released Thursday, the group of policymakers said the new rules would cover “most of the crypto sector” and would require crypto firms to conduct due diligence on their customers.

According to the provisional agreement, crypto firms would need to carry out due diligence when customers intend to process transactions worth at least €1,000 ($1,090). It also adds measures to mitigate risks in relation to transactions with self-hosted wallets, the statement said.

The deal needs to be presented to the European Parliament for approval. “If approved, the Council and the Parliament will have to formally adopt the texts before they are published in the EU’s Official Journal and enter into force,” the statement added.

On Tuesday, the European Banking Authority also extended its guidelines on money laundering and terrorist financing risk factors to the crypto sector.

Vincent Van Peteghem, Belgian Minister of Finance, said in the statement today that the provisional agreement is part of the EU’s new AML system. “This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system.”

Last year, the European Union officially passed its Markets in Crypto Assets (MiCA) regulation, offering more clarity over the scope and definitions of crypto regulation.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Timmy Shen is an Asia editor for The Block. Previously, he wrote about crypto and Web3 for Forkast.News from Taiwan after spending more than three years in Beijing covering finance, entertainment business and current affairs at Caixin Global and Chinese tech at TechNode. His China-related reporting has also appeared in The Guardian. When he's not chasing headlines, you'll find him savoring hot pot and shabu shabu in a Taipei local haunt. Timmy holds an MS degree from Columbia University Graduate School of Journalism. Send tips to [email protected] or get in touch on X/Telegram @timmyhmshen.

Editor

To contact the editor of this story:
Adam James at
[email protected]