Cryptocurrency firms could face AML oversight from the European Union by 2024

According to Luis Garicano, an MEP from the European Parliament, the new EU authority must include crypto-assets in its jurisdiction.

According to reports, the European Commission plans to work with other authorities to have its financial watchdog group look into possible illegal transactions at crypto companies.

It was first proposed by the European Commission's Anti-Money Laundering Authority (AMLA) in July 2021. According to a Bloomberg report, a group of European Union member nations led by Germany and including the Netherlands, Spain, Austria, Italy, and Luxembourg plan to include crypto firms under the purview of the AMLA. According to reports, the organization plans to begin operations in 2024 and be "fully functional" by 2026 at the earliest.

It has been rumored that the European Commission, working with other authorities, plans to have its financial watchdog group potentially monitor illicit transactions at crypto firms.

It was first proposed by the European Commission's Anti-Money Laundering Authority (AMLA) in July 2021. According to a Bloomberg report, a group of European Union member nations led by Germany and including the Netherlands, Spain, Austria, Italy, and Luxembourg plan to include crypto firms under the purview of the AMLA. Starting in 2024, the group is expected to "fully function" by 2026.

EU members reportedly plan for AML watchdog to oversee crypto firms by 2024
Source: cointelegraph

To ensure that EU financial services regulations explicitly cover crypto transactions, an EU diplomat reportedly stated that including crypto firms in the AML watchdog's agenda was a priority. As reported by the news outlet, an unnamed official wanted the group to focus on high risk cross border transactions facilitated by cryptocurrency service providers in addition to banks and other financial institutions. However, EU member nations have not yet had a chance to debate the proposed framework.

Crypto-assets must be explicitly included in the authority's scope, because they are a particularly vulnerable area for money laundering, says European Parliament member Luis Garicano.

The AML watchdog would be one of the first regulatory institutions in Europe with the authority to monitor money laundering in large parts of the continent. More than $8.6 billion worth of cryptocurrency was laundered in 2021 by individuals, a 25 percent increase over the amount laundered the previous year.

A "specialized team dedicated to cryptocurrency" called the Virtual Asset Exploitation Unit has been announced by U.S. Deputy Attorney General Lisa Monaco to be formed by the Federal Bureau of Investigation on February 17 to track and seize illicitly used funds. More than four months had passed since the Justice Department's National Cryptocurrency Enforcement Team was established under the leadership of former Deputy Attorney General senior counsel Eun Young Choi.

** Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of USA GAG nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

Follow us on Google News

Filed under

Recent Search