By 2024, EU members want AML Oversight of Crypto Businesses

As a result of the increase in cryptocurrency usage, there has been an increase in cryptocurrency-related crimes. The European Union is granting further authority to its new anti-money laundering organization to monitor the crypto-verse to increase the effectiveness of crypto oversight operations. 

In response to concerns about cryptocurrency’s usage in illicit fundraising and transactions, European Union officials have increased their efforts in this area.

According to reports, EU members intend to set up an AML watchdog to monitor crypto businesses by 2024

Reports claim the European Commission plans to work with other authorities to examine possible criminal transactions involving cryptocurrency firms.

According to Bloomberg, a coalition of European Union countries, led by Germany, aims to bring cryptocurrency businesses under the authority of the European Commission’s Anti-Money Laundering Authority, a move that was initially proposed in July 2021. The group is expected to be “completely operational” by 2026, and to be “entirely functional” by 2028, while starting in 2024.

According to reports, an EU ambassador stated that the inclusion of crypto businesses on the AML watchdog’s agenda was done to provide more extensive coverage of crypto transactions under EU regulations governing financial services. 

In an interview with a news outlet, the unnamed official was quoted as saying something about the group’s goals, but declining to provide any other information. To ensure that the proposed framework is finalized, EU members must keep debating the issue.

European Parliament member Luis Garicano said that crypto-assets should be included since they are one of the most vulnerable firms when it comes to laundering money.

In Europe, the AML watchdog would be the first regulator to have the capability of monitoring money laundering operations if it were made a law by the legislature. Cryptocurrency laundering in 2021 is expected to rise by 25 percent, according to a report from Chainalysis published in January. 

This EU proposal to tighten rules governing the transfer of cryptocurrencies provides more information on this topic.

Federal Bureau of Investigation’s “specialist section dedicated to cryptocurrency” will be established on February 17th, according to US Deputy Attorney General Lisa Monaco, who made the announcement. Tracking down and seizing illicit funds will be the job of the Virtual Asset Exploitation Unit. 

Deputy Attorney General Eun Young Choi, who has been leading the Justice Department’s National Cryptocurrency Enforcement Squad for over four months, said the team has been in place since September, according to the official statement (NCET).

Regulators around the world are paying more attention to the rapidly expanding cryptocurrency market. A recent Chainalysis analysis found that crypto-related crime will reach an all-time high of $14 billion in 2021. Despite the high rate of criminal activity, the amount of cryptocurrency being used per person has decreased as the technology has gained popularity.

Conclusion

Hopefully, the EU’s plans for this go smoothly as it will help reduce cryptocurrency-based crimes and help cement cryptocurrency as a more respectable way to earn money in the future. But only time will tell if this AML watchdog will be able to do anything about it.

* We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.