EU Banking Watchdog Extends Anti-Money Laundering Guidelines to Crypto Firms

The European Banking Authority (EBA) has expanded the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) guidelines to encompass crypto asset service providers (CASPs) in the European Union. Effective since December 30, this move brings EU-based crypto companies under the regulatory umbrella, requiring them to adjust financial crime-fighting measures, potentially utilizing blockchain analytics tools. The EBA sees these amendments as a crucial step forward in harmonizing the approach to mitigate money laundering and terror financing risks specific to the crypto sector. The guidelines also include a financial crime risk assessment for crypto firms, addressing features like anonymity enhancements and self-hosted wallets. This development follows the finalization of crypto regulations such as the Transfer of Funds Regulation (ToFR) and Markets in Crypto-Assets (MiCA), with MiCA’s investor protections set to take effect in December, allowing an 18-month transitional period for CASPs.(Source: Blockchain reporter)