AML/CFT Rules for Crypto Providers: Finally Biting the Vampire

European Banking Authority Calls for Strengthened Anti-Money Laundering Measures for Crypto Providers – Mandatory Regulations Ahead?

European Banking Authority (EBA) urges stricter regulations on cryptocurrency providers to combat money laundering.

Oh, the European Banking Authority (EBA)! They’re at it again, folks! This time, they are sinking their regulatory fangs into crypto providers, aiming to update the Anti-Money Laundering and Combatting the Financing of Terrorism (AML/CFT) rules. It seems even vampires need a taste of the digital revolution.

In a recent consultation paper released on November 24 (you know, just before we all headed off for a well-deserved turkey-induced coma), the EBA admitted that their current regulations for the crypto world lack the necessary bite. It’s like trying to scare off a pack of hungry wolves with a squeaky toy! Not very effective, is it?

They’re asking interested parties to share their thoughts, ideas, and probably some mean garlic recipes too, until February 26, 2024. So, grab your wooden stakes and let’s dig into the proposed guidelines.

The EBA has some grand plans up its sleeve. They want to integrate AML/CFT criteria, not only for payment service providers, but also for those crypto asset service providers (CASPs) lurking in the shadows. They aim to create a interconnected web of regulations that will make the crypto industry smoother than a werewolf’s transformation.

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But how will CASPs achieve this legendary interoperability? Well, they need to “enable the transmission of information in a seamless and interoperable manner.” It’s like creating a universal translator for the crypto world, so even the van Helsings of the industry can understand each other.

Wait, there’s more! CASPs will also have to obtain and retain information on self-hosted addresses. It’s like giving a travel permit to every haunted house in Transylvania. Plus, they need to make sure they can trace the footsteps of those sneaky crypto transfers by verifying the ownership or control of addresses held by their customers. The EBA will make sure every crypto asset leaves its spooky footprints.

But remember, dear crypto providers, these requirements only come knocking when the transfer amount from the self-hosted account exceeds €1,000. So, if you’re just sending over a few vampire bats or werewolf fangs, no need to worry. The EBA won’t be breathing down your neck…yet.

Assuming this consultation process doesn’t turn into a full-blown battle between humans and the undead, these updated guidelines are expected to rise from their crypt on December 30, 2024. The countdown begins!

And while you’re munching on your garlic bread, don’t forget that this isn’t the EBA’s first brush with the crypto world. They released another paper in October, assessing the suitability of management body members and stakeholders in issuers of asset-referenced tokens and CASPs. It’s like inspecting the holy water bottles and crucifixes of the industry.

But wait, there’s more haunting news! The EU is also cracking the whip on stablecoin (fiat-pegged) cryptos. They want to fortify regulations, ensuring those stablecoin reserves can be monetized faster than a vampire bats’ wingbeat. And they’re demanding issuers to implement robust liquidity monitoring procedures, tackling asset-backing and stability risks.

Last month, the EU adopted the Eighth Directive on Administrative Cooperation (DAC8). It’s a cleverly crafted guideline that compels crypto-asset service providers to report certain information to tax authorities, just like the vampire hunters telling tales to the village elders.

The directive will come to life in 2024, syncing up with the recently nailed down MiCA and anti-money laundering rules under the Transfer of Funds Regulation (TFR). MiCA requires crypto companies to obtain licenses for operating within the European Union, and it insists stablecoin makers keep appropriate reserves to ensure stability and security. Regulations for the cryptoverse are multiplying faster than Dracula’s army.

So, my brave crypto warriors, keep your eyes on the regulations and your garlic close! The EBA and the EU are dancing with the crypto devils, aiming for a more secure and transparent crypto world. Let’s hope they don’t stumble upon any werewolves along the way.

Now, share your thoughts, fears, and all those supernatural blockchain stories in the comments below! And remember, the crypto revolution is a thrilling rollercoaster ride. Buckle up and enjoy the adventure!

Read More: – EBA and ESMA Consult on Assessing Suitability for Cryptoservice Providers – EU Banking Watchdog Proposes Liquidity Rules for Stablecoin Issuers – EU Regulator Warns About Unclear Crypto Firms as It Tries to Fix MiCA Loopholes – Bitcoin Price Prediction: BTC Drops 25% Due to Regulations and National Reserves Influencing the Market

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