European Union Set to Enforce New Rules Mandating Crypto Firms to Conduct Due Diligence Tests
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The Parliament and the European Council temporarily agreed on sections of a new anti-money laundering package to inflict more stringent regulations for crypto companies. In a Thursday statement, the policymakers claimed the rules would cover a significant part of the crypto industry and that crypto companies must conduct due diligence on their clients.

The provisional agreement shows that crypto companies must conduct due diligence for clients planning to process transactions ranging from  € 1000 ($1090).

EU Regulators Plans to Enforce Stringent Crypto Policies 

Additionally, it includes interventions to alleviate risks concerning transactions with non custodial wallets. This deal must be brought before the European Parliament for ratification.

The statement notes that if sanctioned, the Parliament and the Council must formally endorse the text before publication in the European Union’s Official Journal and implementation.

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Global Regulators Step Up to Address Use of Crypto in Money Laundering

The European Banking Authority seeks to treat the crypto industry similar to banks by enforcing its money laundering regulations and terrorist financing risk factors. In a statement, Vincent Van Peteghem, Belgium’s Minister of Finance, noted that the temporary agreement is part of the European Union’s new AML structure.

He said this will eliminate gaps that terrorists and fraudsters can utilize to authorize their proceeds via the financial system. In 2023, the European Union formally approved the Markets in Crypto Assets (MiCA). This provided additional clarity concerning crypto regulation’s definitions and scope.

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Michael Scott

By Michael Scott

Michael Scott is a skilled and seasoned news writer with a talent for crafting compelling stories. He is known for his attention to detail, clarity of expression, and ability to engage his readers with his writing.

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