The European Banking Association (EBA) expanded the requirements for crypto-asset service providers (CASP) within the European Union as part of its anti-money laundering (AML) and countering the financing of terrorism (CFT) efforts.
The EBA released updated AML and CFT regulations for crypto companies operating in the EU. The new requirements oblige CASPs to effectively manage financial crime risks.
More specifically, the new EBA rules require crypto companies to address and mitigate all risks arising from the potential use of digital assets for criminal activity. CASPs, apart from the identification of transaction participants featured in the original version of the rules, will also be required to:
- take into account all characteristics of the products and assets offered;
- record the channels of service provision;
- determine geographic distribution.
The EBA’s recommendations also include an option to use analytical tools based on blockchain if they’ll help fight financial crime in the EU.
In addition, the updated recommendations require credit and financial institutions that serve crypto companies to evaluate activities of CASPs. Especially those involving digital asset custody and decentralized trading platforms.
Competent authorities will have to report on compliance with the guidelines within two months at the latest once they are translated into the official languages of the EU and published in the Journal of the European Council. The new rules will come into force on December 30, 2024.
Earlier, the EBA initiated the European regulators to assess the relationship between traditional banks and financial institutions beyond the banking sector.
Сообщение European Banking Association Tightens Supervision of Crypto Companies появились сначала на CoinsPaid Media.
