EU, Parliament agree on stricter crypto firm due diligence rules

The European Council and Parliament have provisionally agreed on stricter regulations for cryptocurrency firms to enhance anti-money laundering measures in the sector.

The European Council and Parliament have agreed on new rules that will make cryptocurrency firms follow stricter guidelines. These rules are part of the anti-money laundering efforts and were announced on Thursday.

Crypto firms will now have to check their customers more closely, particularly on transactions of €1,000 or, $1,090, or more. The aim is to make sure cryptocurrencies aren’t used for illegal activities. The rules also have a special focus on self-hosted wallets, which are managed by the users themselves, not a company.

This agreement isn’t final yet. It needs to be approved by the European Parliament. Once approved, the Council and Parliament have to adopt it officially, then the rules will be published and start to apply.

The European Banking Authority, on Tuesday, extended its guidelines on money laundering and terrorist financing risk factors, now including the crypto sector.

Vincent Van Peteghem, the Finance Minister of Belgium, said these new rules are part of the EU’s plan to fight against money laundering. The goal is to stop criminals and terrorists from using the financial system to hide their illegal money.

Last year, the EU passed the Markets in Crypto Assets (MiCA) regulation, which clarified rules about cryptocurrencies.