EU Sets Crypto AML Standards: Here Is What You Need to Know

• EU Parliament mandates new KYC and AML rules for crypto on April 24, 2024.
• New regulations under MiCA are to be fully applicable by year-end.
• AMLA in Frankfurt will oversee compliance with crypto regulations.

On April 24, 2024, the European Parliament approved new regulations targeting money laundering within the cryptocurrency sector. These rules impose mandatory due diligence and identity verification for customers. They apply to crypto asset managers and centralized exchanges.

The legislation enhances existing Know Your Customer (KYC) and Anti-Money Laundering (AML) protocols. Under the Markets in Crypto-Assets (MiCA) framework, crypto-asset service providers (CASPs) must now conduct thorough customer due diligence (CDD) and report any suspicious activities to the authorities.

This initiative aligns with the European Union‘s broader strategy to govern digital assets and their markets effectively. MiCA, effective June 2023, will be fully applicable by the end of the year. The new anti-money laundering regulations will complement this framework to secure a transparent crypto ecosystem.

The Authority for Anti-Money Laundering and Countering the Financin…

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