EU Expands AML Rules to Crypto Providers

The European Banking Authority (EBA) is extending its Travel Rules guidelines to include crypto service providers and their intermediaries, effective December 30 under Regulation (EU) 2023/1113.

This requires crypto exchanges in the EU to report information on fund and crypto asset transfers, aligning them with the EU’s Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) framework as defined by the Markets in Crypto-Assets Regulation (MiCA).

Key Points:

• Crypto exchanges and service providers must comply with new AML/CFT requirements starting December 30.
• Payment service providers (PSPs) and intermediary CASPs have a two-month grace period to comply.
• Providers must collect user information, identify transaction purposes, and detect linked transfers.
• The EBA anticipates long-term benefits despite initial financial burdens.

Additionally, the Cardano Foundation has introduced sustainability indicators for the Cardano network, complying with MiCA regulations, emphasizing energy efficiency and reduced carbon footprint.

Alexander Stefanov