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The European Banking Association (EBA) has broadened the requirements for crypto-asset service providers (CASP) within the European Union as part of its initiatives against money laundering (AML) and the financing of terrorism (CFT).
The EBA has issued revised AML and CFT regulations for crypto firms operating in the EU. The updated requirements mandate that CASPs effectively manage risks associated with financial crimes.
Specifically, the new EBA regulations require crypto firms to identify and mitigate all risks linked to the potential misuse of digital assets for illicit activities. In addition to identifying transaction participants as outlined in the initial version of the regulations, CASPs will also need to:
- consider all features of the products and assets provided;
- document the methods of service delivery;
- assess geographic distribution.
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The EBA’s guidelines also suggest the use of analytical tools based on blockchain technology if they can assist in combating financial crime within the EU.
Furthermore, the updated guidelines necessitate that credit and financial institutions serving crypto companies assess the activities of CASPs, particularly those related to digital asset custody and decentralized trading platforms.
Regulatory authorities will be required to report on adherence to the guidelines within two months at the latest after they are translated into the official languages of the EU and published in the Journal of the European Council. The new regulations will take effect on December 30, 2024.
Previously, the EBA prompted European regulators to evaluate the connections between traditional banks and financial entities outside the banking sector.
Сообщение European Banking Association Tightens Supervision of Crypto Companies появились сначала на CoinsPaid Media.
