The new anti-money laundering rules in the EU aim at ending anonymous crypto transactions
The European Parliament is looking into amending the anti-money laundering rules in the European Union. It focuses on cutting non-compliant crypto firms from the EU financial system. At the same time regulated entities will be barred from dealing with companies without a crypto license.
The regulator defines a non-compliant crypto-asset provider as one that has no established jurisdiction or substantive presence in any jurisdiction within EU. It also includes firms not affiliated with any regulated organisation in the EU or operating without permits.
All crypto operators seeking to get authorisation must be registered as business, as well as have a licence from a regulatory body of one of the European jurisdictions. Binance, for instance, could fall subject to proposed changes. It does not have headquarters and is registered on the Cayman Islands. Yet, it recently obtained crypto licenses to operate in Bahrain and Dubai.
Under the new provision, the European lawmakers aim at setting the AML Authority (AMLA) that will exert supervision power over the crypto space.
“AMLA shall set up and maintain an indicative and non-exhaustive public register of shell banks and non-compliant crypto-asset service providers operating within and outside the Union based on information provided by competent authorities, supervisors, the Commission or obliged entities,” the draft said. The measures, according to legislators, are needed owing to high risk of money laundering and terrorist financing inherent to these entities.