The European Parliament approves new cryptocurrency regulations to combat money laundering.
The European Parliament has passed new laws for cryptocurrency agencies that require them to conduct due diligence in order to combat money laundering. The new restrictions apply to all crypto-asset service providers (CASPs) under the new Markets in Crypto-Assets (MiCA) law.
Cryptocurrency exchanges in the European Union must comply with the new guidelines, which include due diligence norms. Due to rapid technological improvements and advancements in FA (Financial Action Task Force) regulations, services such as trading cryptocurrency for fiat and offering custody wallets will now adopt a new approach. Interestingly, the new regulations also affect gambling service providers. To comply with the rule, all operators in the region, including casinos allowing UK players that are not affiliated with GamStop and frequently use cryptocurrency, must now implement new due diligence methods.
Patrick Hansen, Circle’s EU Strategy and Policy Director, shared an image on X (previously Twitter) that included a screenshot of the new regulation. In a post, Hansen adds that CASPs will not be able to provide services to anonymous accounts, which is already prohibited by existing anti-money laundering (AML) legislation. MiCA also outlaws cryptocurrencies that are fundamentally anonymous.
The new due diligence regulations will be implemented under a new body dubbed the Anti-Money Laundering and Countering Terrorist Financing Authority (AMLA).
Its headquarters are in Frankfurt, Germany. Although the law has yet to be legally implemented, the AMLA will be solely responsible for enforcement and monitoring.
The new laws governing the use of digital assets in the European Union are critical for sanitising and clarifying the industry. Surprisingly, these laws are generally positive for the cryptocurrency sector and attracting established banks. In a recent interview, the Deputy CEO of the crypto exchange and trading software Bitpanda emphasised the steady entry of traditional financial institutions into the cryptocurrency business. According to Lukas Enzersdorfer-Konrad, the anticipated MiCA rule gives significant clarity for institutions interested in cryptocurrency. Enzersdorfer-Konrad further stated that Companies desire to work with cryptocurrency service providers who already have the necessary technical skills.
The Bitpanda CEO mentioned that Raiffeisen, Austria’s largest community banking group, launched retail crypto services for consumers last year. Raiffeisen will collaborate with Bitpanda to offer customers services related to commodities, exchange-traded funds (ETFs), equities, and precious metals.
Bitpanda has also teamed with Landesbank Baden-Württemberg (LBBW), Germany’s largest federal bank, to launch crypto custody options for institutional clients in the second half of 2024, in response to rising customer demand. According to the Bitpanda CEU, banks of all sizes across Europe are currently Looking into cryptocurrency use cases and attempting to collaborate with established service providers.
The growing interest in cryptocurrency has spread to schools. Binance Academy, the crypto learning arm of the prominent cryptocurrency exchange Binance, recently announced a collaboration with educational institutions in Europe. The goal is to incorporate authorised university courses into these schools and educate students on blockchain technology, digital assets, and Web3 in general.
Binance Academy has previously partnered with the European Business Institute (EBI) in Luxembourg, ESCP Business School, and Prague University of Economics and Business. The course will cover everything from the fundamentals of cryptocurrencies like Bitcoin (BTC) and Ether (ETH) to advanced subjects Consider blockchain applications in finance, healthcare, supply chain, and other areas. The lessons are designed to introduce pupils to the diverse world of cryptocurrencies and blockchain technology, with the possibility of growing adoption to more niche sectors such as online gambling, voting, and blockchain gaming.
Disclaimer: This content is provided solely for informational purposes. It is not meant to provide legal, tax, investment, financial, or other advice.