Consolidation and centralization: How Europe’s new AML regulation will affect crypto

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11.03.2022 - 12:05

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cointelegraph.com:

According to recent media reports, six European countries, led by Germany, are working on launching an Anti-Money Laundering (AML) body that will include the cryptocurrency market in its purview. Details remain scarce, but it is known that the initiative involves Germany, Spain, Austria, Italy, Luxembourg and the Netherlands. The group is working on “the remit and design” of a new international AML watchdog force that will have a particular emphasis on crypto, and the European Commission — the key executive institution of the European Union — will be the primary platform for the discussion. How will the move affect the European crypto space?

The new task force will aim to “cover the riskiest cross-border entities among banks, financial institutions and crypto assets service providers.” At the moment, the initiative still awaits official deliberation. Christian Toms, a partner in law firm Brown Rudnick’s litigation and arbitration practice group in London, noted to Cointelegraph:

This isn’t the first time the media has speculated on the idea of an EU crypto task force. In July 2021, Reuters — citing leaked documents — reported that the European Commission had proposed a new Anti-Money Laundering Authority, which would become the “centerpiece” of the whole European crypto oversight architecture. The mentioned plans also included new requirements for virtual asset service providers in accordance with the EU’s strict data collection standards.

A common critique of United States crypto regulation is that it relies on a mishmash of agencies such as the Securities and Exchange Commission, Commodity Futures Trading Commission, Financial Crimes Enforcement Network and many others. Europe, though, also does not have a single