The EU has agreed on new laws and regulations to combat money laundering in cryptocurrency
The Regulation on the Transfer of Funds (TOFR) was the subject of a preliminary agreement between the Parliament, the Council and the Commission of the European Union on June 29. The regulatory framework that the EU is creating to regulate cryptocurrencies includes TOFR.
EU Sets the Tone for Tracking Cryptocurrency Transfers
It will be more difficult for criminals to use cryptocurrency for illegal activities thanks to the EU. The negotiators from the President of the Council and the European Parliament came to a preliminary agreement on a proposal to update the rules governing the information that should be provided together with financial transfers, including the transfer of cryptocurrency assets.
The agreement expands the use of the traditional financial rule for the transfer of crypto assets.
If there is an investigation into money laundering and terrorist financing, crypto asset service providers (CASPs) will have to provide this information to the relevant authorities.
The participants of the parliamentary negotiations guaranteed that there would be no minimum amount or exceptions for transfers of small amounts, as previously planned, since transactions with crypto assets simply bypass existing thresholds that activate traceability requirements.
Ernest Utasun, a European Union lawmaker, called the interim agreement in a series of tweets a response to the "unregulated crypto wild west."
Thanks to the new deal, the EU will be able to eliminate the dangers of money laundering and terrorist financing associated with these new technologies, while maintaining competition, protecting customers and preserving the financial integrity of the internal market.
"For too long, crypto assets have been on the radar of our law enforcement agencies," Asit Kanko, one of the leading EU lawmakers discussing the rules, said in a statement. "It will be much harder to abuse crypto assets, and innocent traders and investors will be better protected."
Unplaced wallets
The rules will also apply to interactions between hosted wallets controlled by CASP and transactions from so-called unplaced wallets (the wallet address of a crypto asset belonging to a private user).
If the client sends or receives more than 1,000 euros to or from his own non-hosting wallet, CASP must confirm that the wallet really belongs to the client or is under his effective control.
In March, lawmakers said they wanted to significantly expand the scope of the bill to include transactions with unplaced digital wallets or those that are not managed by a licensed crypto exchange or other regulated service provider, as well as to ensure that all information about transactions is reported to the authorities regardless of risk.
Transfers from person to person carried out without a provider, for example, on trading platforms, or between providers acting on their own behalf, are exempt from the requirements.
Before the rules receive final approval, the EU institutions clarify the technical aspects. Late on Thursday, negotiations were also scheduled to conclude a separate agreement on a comprehensive set of laws on cryptocurrency, known as Markets in Crypto Assets or MiCA.
They are part of an EU initiative aimed at leading the world in taming the fraudulent cryptocurrency market.
https://coin-signal.com/cryptonews/the-eu-has-agreed-on-new-laws-and-regulations-to-combat-money-laundering-in-cryptocurrency/
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