EU may delicense crypto exchanges that break AML rules

Crypto assets regulation will punish breaches of money laundering and terrorism financing rules

A joint report published by the European Supervisory Authorities (ESA) has called for tough measures and punishments for cryptocurrency exchanges and companies that fail to adhere to the European Union’s regulation. 

Legislators are currently finalising the EU’s Markets in Crypto Assets Regulation (MiCA) legislation, which will provide a clearer legal and regulatory framework for the cryptoasset sector within the 27-member union.

After their its study, the European Banking Authority (EBA),  European Securities and Markets Authority (ESMA) and European Insurance and Occupational Pensions Authority (EIOPA) said: “It is opportune that competent authorities granting authoritsation or registration to the non-bank entities… be empowered to withdraw the authorisation/registration for serious breaches of AML [Anti-money laundering] / CFT [Combating the Financing of Terrorism] rules.” 

It further called for MiCA to “appropriately integrate AML/CFT issues in prudential supervision of entities to be regulated and supervised under the regime that will be envisaged in that EU Regulation.” 

What is your sentiment on BTC/EUR?

Vote to see community's results!

The passage of MiCA into law has been a protracted process, with legislators and regulators faced the problem of improving investor protection and legal clarity without strangling a burgeoning sector. 

Last week, the European Central Bank published a report which warned about the increasing integration of cryptoassets with the wider financial environment and called for the immediate implementation of MiCA. 

It admitted, however, that the earliest date at which this could be achieved would be 2024.

Further reading

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image