EU approval of strict monitoring of cryptocurrency movements

The European Parliament (EP) has approved new rules that include closely monitoring the movements of cryptocurrencies such as Bitcoin in the countries of the European Union (EU).

In the EP plenary session held in Strasbourg, the first EU rules for the fight against money laundering and the monitoring of transfers of crypto assets for financial control were adopted by a large majority.

According to the new rules, cryptocurrency transfers, like other financial transactions, will always be monitored and suspicious transactions will be blocked.

In financial transfers, described as the “Travel Rule,” the obligation requiring the institutions conducting the transaction to identify, store, and share the sender’s and receiver’s identity information will also apply to transfers of crypto assets.

ENTRY INTO FORCE IN 2024

Crypto asset service providers will need to detect and intercept criminals’ crypto flows.

Companies in the crypto space will need to comply with all anti-money laundering obligations.

Crypto asset service providers in EU countries will need to obtain a license from the relevant regulatory authorities.

A single legal framework for crypto assets will apply within the EU.

New common rules on the control of crypto assets, including cryptocurrencies, consumer protection and environmental measures will be introduced.

There will be safeguards against market manipulation and financial crime in this area.

These rules, which are expected to enter into force in 2024, will be published in the Official Journal of the EU after their official approval by the European Council. (AA)