European Union to Establish New Agency to Strengthen AML and Crypto Regulations

Sahaj  |  Jul 9, 2021

The European Union has recently revealed that they are planning to set up a new agency to strengthen crypto AML procedures and regulate cryptocurrencies further. In accordance with the data shared with leading market update providers, the EU is planning to introduce transparency rules for cryptocurrencies.

The European Union Going Hard on Crypto AML Procedures

As witnessed in the recent proposal from the European Union, the body demands all the businesses and exchanges involved with crypto trading and dealings to collect the data of all those executing transactions and make them accessible to the EU.

As of the present regulations, it should be noted that the shifting of crypto assets is not added in the European Union rules for the financial services as stated by the report. 

The documents quoted by the market update revealers said:

“A lack of rules leaves holders of crypto-assets exposed to money laundering and financing of terrorism risks.”

The Executive branch of the European Union, the European Commission will be proposing AMLA, which stands for Anti-Money Laundering Authorities that is going to operate with the national regulators to fight criminal activities.

Danske Bank Under Investigation After €200 billion Payment Flow

The biggest bank of Denmark, the Danske Bank is the reason behind the recent proposal as around $227 billion in payments flowed through a branch of this bank, the Estonian branch between the years 2007 and 2015.

Though that case does not fall under the category of cases related to cryptocurrency, digital assets are going to fall under the amplitude of AMLA.

In addition to this, it should be noticed that some of the countries in Europe are already behind the use of cryptocurrencies in criminal activities such as money laundering. 

As revealed, the Financial Conduct Authority (FCA) of the United Kingdom issued caution over the crypto exchange based in the United Kingdom, Binance last month mentioning that it had doubts in relation to the AML procedures of the exchange.

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