EU provisionally agrees on stricter due diligence rules for crypto firms

The European Council and Parliament reached a provisional agreement on parts of a new anti-money laundering package that would impose stricter rules for cryptocurrency firms. In a statement released Thursday, the group of policymakers said the new rules would cover “most of the crypto sector” and would require crypto firms to conduct due diligence on their customers.

According to the provisional agreement, crypto firms would need to carry out due diligence when customers intend to process transactions worth at least €1,000 ($1,090). It also adds measures to mitigate risks in relation to transactions with self-hosted wallets, the statement said.

The deal needs to be presented to the European Parliament for approval. “If approved, the Council and the Parliament will have to formally adopt the texts before they are published in the EU’s Official Journal and enter into force,” the statement added.

On Tuesday, the European Banking Authority also extended its guidelines on money laundering and terrorist financing risk factors to the crypto sector.

Vincent Van Peteghem, Belgian Minister of Finance, said in the statement today that the provisional agreement is part of the EU’s new AML system. “This will ensure that fraudsters, organised crime and terrorists will have no space left for legitimising their proceeds through the financial system.”

Last year, the European Union officially passed its markets in Crypto Assets (MiCA)  regulation, offering more clarity over the scope and definitions of crypto regulation.