us

216.73.216.133

EU Legislates Rigid Traceability Rules for Crypto Transfers to Fight Money Laundering

eu legislated news

The EU on Thursday legislates more strict traceability rules for cryptocurrencies transfer, in a move the crypto industry said would affect privacy, hinder innovation and expose customers to a higher risk of theft.

The draft of the legislation, a part of the broader fight against money laundering, terrorist financing, and financial crimes, mandates cryptocurrency exchanges or platforms to gather and share data on crypto transactions in a business that has so far thrived on its anonymity.

The €1.9 trillion cryptocurrency industry is still subject to Anti-Money Laundering (AML) regulations across the globe. However, the concern that bitcoins and their peers could impact financial stability and be used by criminals is becoming the driving force for lawmakers to bring new regulations for the sector to heel. Under the proposal, which was legislated last year by the European Commission, crypto exchanges and platforms would have to gather, hold and submit information regarding cryptocurrency transactions. The information is also needed to be provided to the regulatory bodies.

 

Ernest Urtasun, a Spanish Green Party lawmaker helping to steer the measure through the parliament said, this would make it easier to identify illicit activities and report suspicious transactions, freeze cryptocurrencies as well as restrict high-risk digital transactions. In this regard, Cryptocurrency exchange Coinbase had warned ahead of the vote that the traceability rules would usher in a surveillance regime that stifles innovation.

This legislation would also crackdown on “unhosted” digital wallets held by individuals, not exchanges – by requiring them to keep records of the cryptocurrency transactions and notify regulatory authorities instantly if the transaction is worth €1,000 or more

Suggested Read: Bank of England Introduces New Regulatory Approach for Crypto

Related Posts

News

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Explore More

News

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Explore More

News

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

Explore More

News

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

Explore More

News

UAE Central Bank hit Financial Firms with fines due to compliance failures

UAE Central Bank hit Financial Firms with fines due to compliance failures

Explore More

News

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Explore More

News

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Explore More

News

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Dutch online bank joins the queue of fines imposition drive of Europe for AML compliance failure, fined €2.6 million

Explore More

News

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Safra Sarasin, private Swiss bank, fined, as they failed to stop laundering of illicit funds

Explore More

News

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

JP Morgan agreed to pay $330 million to Malaysia to settle 1MDB case, additional $3 million implied in fines by Switzerland

Explore More

News

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

The Gambling Commission of the UK announced a £1 million fine on ProgressPlay Limited due to compliance failure

Explore More

News

UAE Central Bank hit Financial Firms with fines due to compliance failures

UAE Central Bank hit Financial Firms with fines due to compliance failures

Explore More

News

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Rising Bank fraud and Money Mule Networks should be a national security threat, warns a UK-based Think Tank

Explore More

News

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Singapore Hits Law Firms With $200,000 in Fines Amid Ongoing AML Investigation

Explore More

Take the next steps to better security.

Contact us

Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

Contact us

Request demo

Get free access to our platform and try our products today.

Get started