Crypto industry faces more stringent AML and QC rules as European Parliament approves new rules.
On April 24, 2024 the European Parliament implemented new legislation which requires cryptocurrencies service providers such as crypto exchanges to comply with strengthened know your client and anti-money laundering provisions. The new changes means that the crypto sector will be subject to enhanced requirements to carry out “due diligence measures and identity checks“ when providing services related to cryptoassets. These new measures will have to be implemented within a three-year timeframe.
A new Frankfurt based regulatory body – the authority for anti-money laundering and countering the finance of terrorism ((AMAL) has been established to oversee the implementation of these measures.
These provisions are expected to be fully enforced by the end of the year and will be introduced from June 2024 onwards.
BSQ maintains a watching brief on the latest developments in crypto crime and cryptocurrency regulation.
Companies or individuals requiring advice on AML and KYC compliance measures or pending investigations or prosecutions in the crypto industry should contact our London offices on (020) 3858 0851.