A group of policymakers from the European Union have stated that these new regulations will encompass “a majority of the crypto sector” and will make it mandatory for market participants to conduct customer verification when engaging in virtual currency transactions.
Under the new EU requirements, transactions involving digital assets exceeding 1,000 euros (approximately $1,090) will be subjected to these regulations. Operators will not only have to verify the legitimacy of the individuals involved in the transactions but also verify the origin of the assets being exchanged. This means that companies will be obligated to gather information about their customers and report any suspicious activities.
“The agreement is part of the EU’s new framework designed to combat money laundering through digital assets. It seeks to enhance collaboration between national systems and ensure that fraudsters, organized crime groups, and terrorists are unable to exploit the financial system for money laundering purposes,” stated the officials.
Reports suggest that all these new regulations will eventually be incorporated into the EU’s upcoming legislation governing the crypto industry. The directive will specifically address the establishment of national systems to combat money laundering in each EU member state.
Earlier, the European Banking Authority (EBA) had revealed its plans to create a technical standard (RTS) for preventing conflicts of interest between users and issuers of stablecoins linked to real assets (ART).