Patrick Hansen explains that the EU's anti-money laundering regulation does not specifically target cryptocurrencies and provides a broader framework.
The regulation excludes providers of unsecured wallets, illustrating the EU's nuanced approach to regulating #digital assets.
Cryptoasset service providers must follow standard KYC/AML procedures under the new regulation.
Recent debate over the EU's approach to #cryptocurrency anonymity has led to widespread speculation. Industry expert Patrick Hansen refutes these claims by clarifying the point: the EU's Anti-Money Laundering Regulation (AMLR) is not specifically aimed at #cryptocurrencies and provides a broader framework. The Regulation is aimed at combating money laundering and terrorist financing. The regulation covers various sectors, including cryptoasset service providers (CASPs), and extends to non-financial institutions at risk of AML/CFT violations.
Contrary to rumors of a complete ban on anonymous crypto wallets and transactions, the AMLR makes provisions for these technologies. The regulation excludes non-custodian wallet providers from its requirements. This distinction is important to understand the EU's approach to regulation. Non-custodial wallets allow users to directly control their private keys and therefore their assets. This exception illustrates the EU's nuanced stance on the regulation of digital assets.
The AMLR's impact on CASPs, including exchanges and brokers, is significant but not without precedent. These organizations must comply with standard KYC/AML procedures under the Market in Cryptocurrency Assets (MiCA). This includes customer due diligence (CDD) practices. The aim is to prevent anonymization of accounts and services in custodial crypto-businesses. In addition, the ban will also apply to private coin accounts, strengthening practices in line with global AML standards.
According to Patrick Hansen's analysis, the AMLR confirms existing AML/CFT rules for CASPs and other obligated entities.
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