Two committees within the European Parliament have recently approved key components of a wide-ranging anti-money laundering legislative package that includes measures applicable to the cryptocurrency sector.Â
This legislative progress follows a January agreement on the Anti-Money Laundering Regulation (AMLR), which mandates that crypto service providers adhere to customer verification protocols and monitor transactions involving self-hosted wallets as well as cross-border transfers. Additionally, the legislation establishes the Anti-Money Laundering Authority (AMLA), set to be based in Frankfurt, Germany.
The Joint Committee on Civil Liberties, Justice, and Home Affairs, alongside the Committee on Economic and Monetary Affairs, cast their votes in favor of the establishment of the AMLA, with a 68 to 10 vote. Furthermore, a provisional agreement on the regulation for preventing the financial system’s use for money laundering or terrorist financing saw a vote of 71 in favor, with four abstentions and nine against. The proposed measures, aimed at being adopted by the EU’s 27 member states, received a supportive vote of 74, with five against. These measures are integral to the EU’s strategy against money laundering, aiming to create a uniform rulebook for implementation across the member states.
Regulatory concerns
Although the regulation aims to apply uniform requirements across all players in the financial sector, there is concern within the European crypto industry that the rules for crypto service providers might be more stringent than those for traditional financial institutions. The newly adopted texts are a key step in the EU’s efforts to combat money laundering, seeking to harmonize the approach across the bloc and ensure that crypto service providers comply with comprehensive verification and monitoring requirements.
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