EU Reaches Provisional Agreement on Stricter Regulations for Crypto Firms

The European Union (EU) has made progress towards imposing stricter due diligence rules for cryptocurrency firms as part of its Anti-Money Laundering Regulation. This landmark agreement signals a significant shift in how the EU approaches the oversight of the crypto industry.

As the EU takes a firm stance against money laundering and terrorist financing, the crypto industry finds itself subject to increased regulatory scrutiny. The European Parliament and EU Council have reached a provisional deal on an anti-money laundering regulatory package that applies to crypto.

Key Aspects of the New Crypto Regulations in the EU

The provisional agreement includes measures designed to enhance transparency and prevent illicit activities within the crypto space. Crypto asset service providers will be required to perform due diligence checks on customers conducting transactions of €1,000 ($1,090) or higher and report suspicious activity. This measure aims to close loopholes that criminals could exploit.

Impact on Crypto Businesses and Users

These stricter regulations are expected to have a wide-ranging impact on crypto businesses operating within the EU, as well as users of crypto assets. The increased compliance burden will likely require firms to invest in more robust KYC (Know Your Customer) and AML (Anti-Money Laundering) systems.

For users, this means potentially more scrutiny of transactions and a greater emphasis on verifying their identity when using crypto services.

What's Next for Crypto Regulation in the EU?

The provisional agreement now needs to be formally adopted by the European Parliament and EU Council. Once adopted, member states will be required to implement the new rules into their national legislation. This process is expected to take some time, but the direction is clear: the EU is committed to creating a more regulated and transparent crypto environment.