The European Banking Authority (EBA) proposes new guidelines for the crypto sector. It wishes to update the rules on combating money laundering and the financing of terrorism (AML/CFT).
Complying cryptocurrency providers with AML/CFT standards
In a consultation document published on November 24, the EBA intends to propose new rules for the crypto sector. She explains that European regulations are no longer sufficient to govern crypto providers’ compliance with AML/CFT standards. Therefore, the new guidelines will address these issues.
The ABE suggests to merge the AML/CFT criteria for payment service providers and crypto service providers (CASP). After the consultation process, the new guidelines are expected to come into force on December 30, 2024. Nevertheless, the EBA is giving interested parties until February 26, 2024 to provide feedback.
Improve protocol interoperability
The ABE proposes to oblige PSAPs to work on the interoperability of their protocols in order to enable the transparent and interoperable transmission of information. PSAPs will also need to obtain and maintain information about self-hosted addresses. They must ensure that individual identification of the transfer of crypto assets is possible. Additionally, they must verify whether the PSAP client owns or controls this address. These requirements apply when the transfer amount from the self-hosted account is more than 1,000 euros. However, the ABE does not specify whether this is a monthly, daily or one-off threshold.
This ABE initiative is part of a broader approach to regulating the crypto sector. In July, it encouraged issuers of crypto stablecoins to voluntarily adhere to specific guiding principles related to risk management and consumer protection. In October, it published a consultation paper regarding asset-referenced tokens.
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