A report advances that the EU is working on the creation of a new wide-ranging AML anti-money-laundering laws, regulations, and procedures that aim to end the unlawful income practices. regulator for the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. sector.
- EU works on new regulated regulation is when something is controlled by a specific set of rules. AML for cryptocurrencies.
- Regulation would cover digital digital technologies are these electronic tools that have the ability to generate, store or even process data. asset exchanges.
- The aim is for it to be broad in scale and with implications throughout the bloc.
The European Union (EU) is looking to create a new anti-money laundering (AML) regulator that would be strictly tasked with overseeing the digital currency currency is a medium of exchange that defines value. space.
According to a informs of The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain.the EU is in the process of designing a sixth “. Anti-Money Laundering Authority ” or AMLD6, which will have direct oversight over the cryptocurrency industry.
Los esfuerzos son parte de un paquete más amplio de política anti-lavado de dinero para los países del bloque europeo que tendrá implicaciones en todas las instituciones financieras, independientemente de las reglas de cada jurisdicción.
As the publication points out, previous anti-money laundering directives had established frameworks for EU members to collect and share information on beneficial owners. However, AMLD6 will have a broader scope, as it will be tasked with monitoring cryptocurrency service providers, especially those considered to be of “ high risk “.
According toThe Blockwhich reviewed several versions of the proposal, a central axis of the project is the creation of a scaled AML regulator that reduce opportunities for jurisdictional arbitration within the zone. The news outlet quoted a parliamentary report that described the new system as follows:
EU level supervision consisting of a hub and spoke model, i.e. EU level supervisor competent for direct supervision of certain financial institutions (FIs), indirect supervision/coordination of the other FIs, and a coordination function to oversee the Non-financial institutions. sector as a first step.
EU tightens cryptocurrency regulations
According to the report, the new regulation could be a major game changer for the EU, since the Previous AML directives set loose standards that are somewhat left to the discretion of each jurisdiction; at least for the crypto sector.
As the media outlet recalls, AMLD5 the European Union’s 5th Anti-Money Laundering Directive (AMDL5) is an update to the union’s Anti-Money Laundering (AML) framework. stated that member states must treat cryptocurrency exchanges as financial institutions. But that implementation was left to the member states.
The creation of the new regulatory body will depend on tripartite negotiations between the European Commission, the European Council and the European Parliament. According to reports, all agencies have expressed the need for stricter regulations for the cryptocurrency industry; although e he implementation of AMLD6 is likely to be years away.
In the past, the European Parliament has been the most aggressive of the three bodies in terms of demanding cryptocurrency regulation, notes The Block which adds that it is ” especially the agency is unlikely to oppose giving the future regulator direct oversight over cryptocurrencies “.
The European Union has been taking a tough approach to regulating digital assets. This year, the Parliament voted in favor of a rule that attacks the anonymity of cryptocurrencies and limits the use of cryptocurrency wallets across the bloc.
European lawmakers have been working on the proposed law Markets in Crypto Assets (MiCA ) The European Central Bank has called for a broad framework to regulate cryptocurrencies, although some have pointed out that its scope may not be sufficient. European Bank President Christine Lagarde has called for the introduction of “MiCA 2”, considering that the current version of MiCA tiene una visión “estrecha”.
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Article by Hannah Estefania Perez / DiarioBitcoin
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