From December 30, the European Banking Authority (EBA) will require crypto exchanges in the EU to comply with Regulation (EU) 2023/1113, aimed at enhancing Anti-Money Laundering (AML) measures.
These new rules mandate that crypto asset service providers (CASPs) report detailed information on fund and crypto asset transfers.
Under the EU’s Markets in Crypto-Assets Regulation (MiCA), CASPs will also need to adhere to the EU’s AML/Countering the Financing of Terrorism (AML/CFT) framework. This applies to payment service providers (PSPs), intermediary PSPs, CASPs, and intermediary CASPs, all of which must declare compliance within two months.
The EBA’s new guidelines specify the information that must accompany transfers of funds and certain crypto assets. Crypto service providers must gather user information for transfers, identify service-related transactions, and detect linked transfers. They must also declare their policies on multi-intermediation and cross-border transfers.
Despite potential financial stress for crypto exchanges and service providers in meeting these new requirements, the EBA believes the benefits will outweigh the costs, enhancing the fight against money laundering and terrorist financing.
Crypto exchanges under the EU’s Anti-Money Laundering Directive (AMLD) or domestic AML/CFT regimes must continue to follow these relevant requirements. Globally, governments are tightening regulations, prompting crypto protocols to enhance their compliance measures.
In March, Binance, the world’s largest crypto exchange, joined the Global Travel Rule alliance to combat financial crimes like money laundering and terrorist financing.
