The European Parliament has made a significant step in the fight against money laundering by approving a comprehensive package of laws aimed at bolstering due diligence measures and customer identity checks, particularly for entities dealing with crypto-assets.
In a session held on Wednesday, the European Parliament greenlit the adoption of legislation that mandates stricter due diligence requirements for crypto firms, with a specific focus on so-called crypto asset managers. These entities are now obligated to implement robust protocols for identifying and verifying customers’ identities, as well as promptly reporting any suspicious activities to relevant authorities.
The newly endorsed regulations will have a profound impact on crypto-asset service providers (CASPs), including centralized crypto exchanges, alongside a broad spectrum of other institutions such as gambling services, as previously reported by The Block.
Patrick Hansen, the EU Strategy and Policy Director at Circle, commented on the anticipated outcome of the vote, noting its alignment with expectations. He elaborated on the next steps, highlighting that the legislative package will undergo formal adoption by the Council of the EU and is slated to come into effect three years from now.
Addressing recent speculations, Hansen clarified that the legislation does not entail a ban on anonymous crypto wallets or self-custodial payments, debunking rumors that circulated in the previous month.
He emphasized that the new laws primarily target CASPs already regulated under the Markets in Crypto-Assets Regulation (MiCA), a regulatory framework introduced by the European Union to oversee digital assets and their markets. MiCA, which commenced implementation in June 2023, is set to be fully enforceable by the year’s end.
