New AML Requirements for Crypto Exchanges
The future for cryptocurrency exchanges in Europe is not so bright as those exchanges from 01 January 2023 will be under the norm 2023/1113.
Compliance for Crypto Asset Service Providers
Crypto asset service providers (CASPs), under the EU”s Markets in Crypto-Assets Regulation (MiCA) directive, will be part of the larger anti-money laundering/counter-terrorism financing regulation. This is the reaction of payment service providers, intermediary PSPs, CASPs, and intermediary CASPs, which take in two months to put their stamps of compliance on the rules.
Information Collection and Transaction Identification
Crypto service providers are required to collect user information for fund or crypto transfers and also to identify the transactions that are related to the services as well as to detect linked transfers. They must also declare their policies on multi-intermediation and cross-border transfers, which should be transparent as well as be regulatory in the case of those who participate.
Financial Impact and Compliance Costs
The EBA even perceives that the compliance may call upon the exchanges and the service providers to pump their finance. Nevertheless, it does not fall back from its position as it states that the long-term gains more than the costs and as a result the total effort to combat money laundering and terrorist financing is strengthened.
Adherence to Existing AML Requirements
Shares of the whole crypto industry regulated under the Anti-Money Laundering Directive or different domestically surfaced money laundering/anti-terrorist financing legislative fields and pursuing these as well, will the exchanges and the service providers be.
Global Efforts in Crypto Regulation
The crypto exchanges in different governments all over the world are stringently monitored by governments, the industry is nevertheless hard at work to meet the regulations. Binance, for its part, being the world’s largerst exchange, decided to be part of the Global Travel Rule group where it participates in the efforts to locate and terminate the illegal activities connected with financial crimes e.g. money laundering and terrorist funding.
The spreading of the EU Travel Rule over to cryptocurrency exchanges is an important leap towards globally respected financial security and crypto integrity.
