European Parliament Adopts New Rules for Crypto Firms to Combat Money Laundering

The European Parliament has taken a significant step in the fight against money laundering by adopting new rules that will impose due diligence requirements on crypto firms. This move comes as part of a package of laws aimed at enhancing measures to check customers’ identities, particularly for crypto asset managers.

Under the new law, crypto-asset service providers, including centralized crypto exchanges, will be required to report any suspicious activities to authorities. This will also impact other institutions such as gambling services, as reported by The Block.

Circle’s EU Strategy and Policy Director, Patrick Hansen, commented on the vote, stating that the package will now be formally adopted by the Council of the EU and will come into effect three years later. Hansen also addressed rumors surrounding the new laws, clarifying that they will not ban anonymous crypto wallets or self-custodial payments. Instead, they will apply to CASPs already regulated under MiCA, a regulatory framework for digital assets in the EU.

Hansen emphasized that the final version of the law is a positive outcome for the crypto industry, as it takes a risk-based approach with various options for compliance. This is a significant relief for the industry, as previous versions proposed stricter measures.

Overall, the adoption of these new rules represents a crucial development in the regulation of the crypto industry in Europe. It underscores the commitment of lawmakers to combat money laundering and ensure the integrity of the financial system.