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<p class="is-style-lead">In a consultation paper released on Nov. 24, the European Banking Authority (EBA), an EU agency tasked with implementing a standard set of rules to regulate banking across all EU countries, highlights that existing regulations governing Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) standards compliance for crypto providers are inadequate.&nbsp;</p>
<p>The EBA has since invited interested parties to provide comments until Feb. 26.</p>
<h2 class="wp-block-heading" id="the-proposal-in-effect">The proposal, in effect</h2>
<p>As stated in the Executive Summary,&nbsp;<a href="https://www.eba.europa.eu/sites/default/documents/files/document_library/Publications/Consultations/2024/Consultation%20on%20Guidelines%20on%20preventing%20the%20abuse%20of%20funds%20and%20certain%20crypto-assets%20transfers%20for%20ML-TF%20%28Travel%20rule%20Guidelines%29/1063898/Consultation%20paper%20on%20draft%20travel%20rule%20Guidelines%20under%20Regulation%20%28EU%29%202023_1113.pdf" target="_blank" rel="noopener noreferrer nofollow">the paper</a>&nbsp;comes as bid to enhance measures for detecting missing or incomplete information on the payer or payee; the EBA is suggesting the repeal of the 2017 Joint European Supervisory Authorities (ESAs) Guidelines under Article 25 of Regulation (EU) 2015/847. This move aims to streamline procedures and better manage fund transfers lacking essential information within the regulatory framework.</p>
<p>Worth noting is that in section four of the consultation paper, labeled “Preventing the Abuse of Funds and Certain Crypto-Assets Transfers,” Crypto Asset Service Providers (CASPs) will now be mandated to obtain and maintain information on self-hosted addresses. Furthermore, the rules require CASPs to ensure individual identification of crypto asset transfers and verify ownership or control of the address by the CASP customer.</p>
<p>These stipulations would come into effect when the transfer amount from a self-hosted account surpasses 1,000 euros, although the EBA does not specify whether this threshold is on a monthly, daily, or one-time basis.</p>
<p>You might also like: <a href="https://crypto.news/europe-calls-on-non-eu-nations-to-tighten-crypto-regulation/" rel="noopener noreferrer nofollow"> Europe calls on non-EU nations to tighten crypto regulation </a></p>
<h2 class="wp-block-heading" id="steps-toward-regulation">Steps toward regulation</h2>
<p>This news comes just two months after&nbsp;<a href="https://crypto.news/european-lawmakers-approve-crypto-tax-regulatory-initiative/" target="_blank" rel="noopener noreferrer nofollow">European lawmakers</a>&nbsp;endorsed the DAC8 directive on Sept. 13, with 535 votes in favor, to empower tax authorities to oversee and regulate cryptocurrency transactions across the EU.</p>
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<p>Together, this marks another step in providing comprehensive monitoring capabilities for transactions conducted by individuals and companies within the region, in what may be leading steps for the industry as a whole.</p>
<p>Read more: <a href="https://crypto.news/ukraine-declares-intention-to-adopt-europes-mica-regulations/" rel="noopener noreferrer nofollow"> Ukraine declares intention to adopt Europe’s MiCA regulations </a></p>

European Banking Authority proposes overhaul of AML, CFT rules for crypto providers

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