EBA Expands Cryptocurrency Guidelines Latest Crypto News

Coin World News Report:
The European Banking Authority (EBA) has announced a significant measure to strengthen anti-money laundering efforts by expanding its travel rule guidance to include cryptocurrency service providers and intermediaries. This new regulation requires cryptocurrency exchanges within the European Union to comply with Regulation 2023/1113, which mandates the submission of detailed information on funds and cryptocurrency asset transfers starting from December 30th.
Section 1: EU Legislation
According to the Markets in Crypto-Assets Regulation (MiCAR), Crypto Asset Service Providers (CASP) will be subject to the strict anti-money laundering and counter-terrorism financing (AML/CFT) framework of the European Union. After the implementation of this regulation, Payment Service Providers (PSPs), intermediary PSPs, CASPs, and intermediary CASPs will have two months to confirm their compliance with these new directives: access NEWSLINKER for the latest technology news.
“The deadline for supervisory authorities to report on their compliance with the guidance will be two months after the date of publication.”
The broader guidelines require the collection of user data for funds or cryptocurrency asset transfers, identification of the nature of transactions, and identification of related transfers. Additionally, cryptocurrency service providers and intermediaries must declare their policies regarding multiple intermediaries and cross-border transfers.
Section 2: What are the details?
The European Banking Authority has acknowledged that compliance with the EU travel rule guidance may impose financial burdens on cryptocurrency exchanges and service providers. Nevertheless, regulatory agencies anticipate significant long-term benefits:
“On balance, the benefits expected to arise from this guidance are anticipated to outweigh the potential costs and are expected to contribute to the increased efficiency of AML/CFT work.”
Currently, cryptocurrency exchanges and service providers governed by the EU Anti-Money Laundering Directive (AMLD) or local AML/CFT frameworks will continue to be bound by existing AML/CFT regulations. As European authorities strengthen supervision of cryptocurrency exchange operations, cryptocurrency protocols are taking proactive measures to ensure compliance.
Section 3: Key takeaways for cryptocurrency stakeholders
For industry stakeholders, specific and valuable implications include:
Cryptocurrency exchanges must be prepared to meet the new compliance requirements by December 30th. Service providers need to implement robust processes for user data collection and transaction identification. Policies regarding handling multiple intermediaries and cross-border transfers must be clearly defined.
These insights highlight the urgent need for cryptocurrency entities to rapidly adapt to an expanding regulatory environment.
In a related development, the Cardano Foundation collaborated with the Crypto Carbon Rating Institute (CCRI) to release sustainability metrics for the Cardano network based on the upcoming MiCAR regulations. The report indicates that Cardano is striving to develop an energy-efficient consensus protocol with lower energy consumption compared to proof-of-work systems, while also incorporating key sustainability indicators.
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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware of the high volatility of cryptocurrencies and the associated risks, and should conduct their own research.