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The regulation comes under the new EU anti-money laundering package and will be aligned with the Markets in Crypto-asset rules. (MiCA)
Source : Wikimedia Commons
What changes will the new legislation bring into effect?
The provisional agreement will create a regulatory framework to help the EU protect their citizens against risks of money laundering or terrorism financing.
CASPs or crypto asset service providers will be obliged to make accessible details about the originator and beneficiary involved in whichever crypto transfer they operate.
As of yet, there is no minimum threshold under which these rules don’t apply, meaning the full set of originator information will have to travel with the crypto-transfer, regardless of the amount.
When it comes to data protection, the GDPR (General Data Protection Regulation) will apply to crypto-transfers and no new data rules will be set up.
According to the 4th directive of the AML, member states of the EU will have to ensure that all crypto asset service providers qualify as obliged entities.
How was this piece of legislation created?
The proposal, part of a package of legislative proposals made to strengthen the EU’s anti money laundering and countering terrorism financial (AML/CFT) rules, was first resented by the commission on the 20th of July, 2021.
The council agreed upon its position on the transfer of funds proposal on the 1st of December, 2021. Trilogue negotiations started on the 28th of April and ended in the provisional agreement.
The crypto-transfer market is huge, making the proposal agreement a vital piece of legislation.
The global crypto-asset management market is poised to reach $9.36 billion by 2030.
This article is sourced from the following links:
Crypto Asset Management Market Predicted to Reach $9.36 Billion by 2030 (alliedmarketresearch.com)
