EU establishes new anti-money laundering agency to crack down on cryptocurrencies

According to the Reuters, the European Union (EU) will set up a new anti-money laundering body and introduce transparency rules for cryptocurrencies.

Today the EU tabled a new proposal that expects cryptocurrency service providers (such as exchanges) to collect the data of the transactions and facilitate access to them.

Currently, the transfer of digital assets is not included in EU financial services rules. The lack of rules “puts crypto-asset owners at risk of money laundering and terrorist financing.”

Therefore, the European Commission, the executive body of the EU, proposes the establishment of an agency to combat money laundering (AMLA) in cooperation with the national authorities for the purpose of crime prevention.

The proposal likely stems directly from the fact that Danske Bank, Denmark’s largest bank, was investigated for money laundering after it was found that from 2007 to 2015 it had made payments of 200 billion euros ($ 227 billion) through a small branch If the flow is unrelated to cryptocurrencies in Estonia, the AMLA will continue to target digital assets as the EU believes that “illegal cash flows” can occur through the transfer of crypto assets. “

The EU currently has no initiative to prevent “dirty” money, but relies on the regulators of the member states. The report finds that these regulators do not always fully implement EU rules.

However, several countries in Europe have enacted rules targeting the use of cryptocurrencies for money laundering. Last month, the UK’s Financial Conduct Authority (FCA) issued a warning to Binance’s UK company, Binance Markets Limited, that it had a “problem” with anti-money laundering procedures.

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