The European Banking Authority (EBA) has initiated a public consultation process for the proposed guidance principles aimed at strengthening anti-money laundering (AML) and combating the financing of terrorism (CFT) standards in the cryptocurrency market. The published guidance principles aim to address the evolving challenges faced by cryptocurrency service providers (CSPs) and payment service providers (PSPs) in complying with AML/CFT regulations. The move by EBA stands out for its focus on meeting the need for a comprehensive regulatory framework in the rapidly evolving cryptocurrency market.
<h2 style="text-align: justify" id="strong-eba-calls-for-stricter-aml-cft-compliance-from-crypto-service-providers-strong">EBA Calls for Stricter AML/CFT Compliance from Crypto Service Providers</h2>
According to a recent report, EBA has identified gaps in the existing regulatory framework that governs AML/CFT compliance among cryptocurrency service providers. Taking this into consideration, EBA has proposed new guidance principles that will be open for public consultation until February 26, 2024, specifically targeting CSPs and PSPs.
<img decoding="async" class="aligncenter size-full wp-image-280715" src="https://coin-turk.com/wp-content/uploads/2023/11/Kripto-Para-AML.jpeg" alt="" width="1280" height="720">
EBA emphasizes a collaborative approach to strengthen the regulatory environment by proposing to harmonize AML/CFT criteria for both CSPs and PSPs. The proposed guidance principles outline key measures to strengthen AML/CFT controls. For example, CSPs are advised to enhance the interoperability of their protocols to ensure smooth transmission of information. Additionally, CSPs will be required to acquire information about self-hosted wallet addresses and maintain records about them, thereby enhancing the traceability and identification of cryptocurrency transfers.
Although the guidance principles set a threshold of one thousand euros for examining self-hosted wallet addresses, no specific interval for reviewing these wallets has been specified.
Upon the conclusion of the consultation process, the effective date for the new guidance principles has been set as December 30, 2024. This move reflects EBA’s ongoing efforts to adapt regulatory frameworks to the dynamic cryptocurrency market environment and the final consultations regarding the suitability of management and shareholders in crypto-related organizations.
Recently, EBA targeted stablecoin issuers and invited them to voluntarily adhere to specific guiding principles on risk management and consumer protection. This move was seen as the regulator’s commitment to encourage a strong and harmonious cryptocurrency market. However, as the cryptocurrency market continues to mature, global regulatory bodies are faced with the challenge of striking a balance between innovation and combating <a href="https://newslinker.co/category/finance/" data-wpel-link="exclude" rel="noopener noreferrer nofollow">financial</a> crimes. In this context, EBA’s newly proposed guidance principles represent a significant step towards achieving this delicate balance and paving the way for a safer and regulated cryptocurrency market.
<h2 style="text-align: justify" id="strong-the-aml-blow-dealt-by-the-us-department-of-justice-to-binance-strong">The AML Blow Dealt by the US Department of Justice to Binance</h2>
As the world’s largest cryptocurrency exchange in terms of trading volume, <a href="https://en.coin-turk.com/binance-loses-market-share-for-the-seventh-consecutive-time-legal-issues-cause-concern/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Binance</a> recently faced sanctions from the US Department of Justice (DoJ) for alleged violations of AML laws. The DoJ stated that it had closely monitored Binance for the past five years and found evidence of money laundering, illegal money transfers, and violations of criminal sanctions.
In response to these serious allegations, Binance CEO Changpeng Zhao took a significant step by resigning from his position. Additionally, Zhao personally admitted his guilt in failing to establish an effective anti-money laundering system, as stated by the DoJ. Continue Reading: <a href="https://en.coin-turk.com/eba-initiates-public-consultation-process-for-strengthening-aml-cft-standards-in-the-crypto-industry/" data-wpel-link="internal" rel="noopener noreferrer nofollow">https://en.coin-turk.com/eba-initiates-public-consultation-process-for-strengthening-aml-cft-standards-in-the-crypto-industry/</a>

EBA Initiates Public Consultation Process for Strengthening AML/CFT Standards in the Crypto Industry

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