Cardano

Carbon

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<p style="text-align: justify">You can also read this news on BH NEWS: <a href="https://en.bitcoinhaber.net/eba-expands-crypto-guidelines" data-wpel-link="internal" rel="noopener noreferrer nofollow">EBA Expands Crypto Guidelines</a><br></p>
<p style="text-align: justify">The European Banking Authority (EBA) has announced an important initiative to bolster Anti-Money Laundering (AML) efforts by broadening Travel Rule guidelines to encompass crypto service providers and intermediaries. This new regulation mandates that crypto exchanges within the European Union adhere to Regulation (EU) 2023/1113, requiring the submission of detailed information on fund and crypto asset transfers starting from December 30.</p>
<h2 id="legislation-in-the-european-union">Legislation in the European Union</h2>
<p style="text-align: justify">According to the Markets in Crypto-Assets Regulation (MiCAR), crypto asset service providers (CASPs) will fall under the EU’s stringent AML and Countering the Financing of Terrorism (AML/CFT) framework. Upon the regulation’s implementation, payment service providers (PSPs), intermediary PSPs, CASPs, and intermediary CASPs will have a two-month window to confirm their adherence to these new directives:</p>
<p style="text-align: justify">“The deadline for competent authorities to report their compliance with the guidelines will be two months after the translations are published.”</p>
<p style="text-align: justify">The broader guidelines necessitate the collection of user data for fund or crypto asset transfers, determining the transaction’s nature, and identifying related transfers. Additionally, crypto service providers and intermediaries must declare their policies on multiple intermediations and cross-border transfers.</p>
<h2 id="what-are-the-details">What Are the Details?</h2>
<p style="text-align: justify">The EBA has recognized that complying with the EU Travel Rule Guidelines may impose <a href="https://finance.coin-turk.com/" rel="noopener noreferrer nofollow" target="_blank" data-wpel-link="exclude">financial</a> burdens on crypto exchanges and service providers. Nevertheless, the regulatory body anticipates substantial long-term advantages:</p>
<p style="text-align: justify">“Overall, the benefits derived from this guideline are expected to outweigh the potential costs, and it is expected to contribute to making AML/CFT efforts more effective.”</p>
<p style="text-align: justify">Currently, crypto exchanges and service providers governed by the EU’s Anti-Money Laundering Directive (AMLD) or local AML/CFT frameworks will continue to be subject to the existing AML/CFT regulations. As European authorities intensify oversight on crypto exchange operations, crypto protocols are adopting preemptive measures to ensure compliance.</p>
<h2 id="key-takeaways-for-crypto-stakeholders">Key Takeaways for Crypto Stakeholders</h2>
<p style="text-align: justify">Concrete and valuable inferences for industry stakeholders include:</p>
<ul style="text-align: justify">
 <li>Crypto exchanges must prepare to meet new compliance requirements by December 30.</li>
 <li>Service providers need to implement robust user <a href="https://newslinker.co/category/ai/" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="exclude">data collection</a> and transaction identification processes.</li>
 <li>Policies addressing multiple intermediations and cross-border transfers must be clearly defined.</li>
</ul>
<p style="text-align: justify">These insights highlight the urgent need for crypto entities to adapt to the expanding regulatory landscape promptly.</p>
<p style="text-align: justify">In a related development, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has released sustainability metrics for the Cardano network in line with the forthcoming MiCA regulations. The report indicates Cardano’s ongoing efforts towards an energy-efficient consensus protocol, showcasing lower electricity consumption compared to proof-of-work systems, alongside key sustainability metrics.</p>
<h5><span style="font-weight:bold;font-size:16px">The post first appeared on BH NEWS: </span> <a href="https://en.bitcoinhaber.net/eba-expands-crypto-guidelines" data-wpel-link="internal" rel="noopener noreferrer nofollow">EBA Expands Crypto Guidelines</a></h5>

EBA Expands Crypto Guidelines

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