EU Cracks Down on Crypto With Stricter Anti-Money Laundering Rules

• EU tightens AML regulations, bringing crypto-asset service providers (CASPs) under regulatory oversight.
• CASPs must conduct customer due diligence on transactions ≥€1,000, verify identities, and report suspicious activity.
• Provisions are subject to approval by the Committee of Permanent Representatives and European Parliament.

The crypto sector is bracing for stricter anti-money laundering (AML) regulations as the European Union tightens its net on financial crime. As part of a comprehensive AML package, the Council and Parliament reached a provisional agreement that brings crypto-asset service providers (CASPs) under the regulatory fold.

The agreement expands the list of obligated entities to include most CASPs, compelling them to conduct customer due diligence on transactions of €1,000 or more, verify customer identities, and report suspicious activity.

These measures aim to increase transparency and prevent illicit funds from flowing through the crypto ecosystem. The deal also adds measures to mitigate risks concerning transactions with self-hosted wallets.

Furthermore, the regulation i…

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