The European Banking Authority has issued new guidelines for crypto-asset service providers in Europe, catering specifically to preventing crimes in the industry.
The European Banking Authority, a major regulator of European financial services, has issued new crypto guidelines. The guidelines are meant for the region’s crypto-asset service providers (CASPs). The crypto guidelines also specify anti-money laundering and terrorist financing and the measures to prevent them.
In a press release, the regulator stated how such crypto firms witnessed multiple crimes in financial services. It said the anonymity of crypto and its speed in transfers could be the reason. Hence, the regulator said the measures were important to inform crypto firms of mitigation measures. Such measures included using blockchain analytics tools, it added.
“Today’s amendments aim to help CASPs identify these risks by providing a non-exhaustive list of different factors, which may indicate the CASP’s exposure to higher or lower levels of the ML/TF risk due to its customers, products, delivery channels and geographical locations. Based on these risk factors, CASPs can develop understanding of their customer base and to identify which part of their business or activity is most vulnerable to ML/TF, “said the press release.
The European Banking Authority also released a comprehensive final report detailing the new crypto guidelines. Along with the MiCA crypto regulations in Europe, these measures could also benefit crypto firms operating in Europe. The European Union has been a step ahead in crypto regulations for over a year since it passed the MiCA.
As a result, trading activity in euros has jumped exponentially recently, according to a report. Its market size in crypto trading compared to other fiat currencies also jumped. The trend could continue as long as regulators in Europe initiate crypto-friendly policies.
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