EU: AML fight takes over NFT, DAO and DeFi platforms

The European Parliament adopted from new provisions in the framework of the fight against the laundering. The opportunity to complete MiCA and to frame the anonymous transfers in cryptocurrency.

The European Parliament has voted new measures to combat money laundering and terrorist financing. As suggested by initial information, the parliamentarians are supplementing the provisions laid down by MiCA with regard to crypto.

The newly introduced provisions are not exclusive to digital assets. Some are, however, specific to this industry. Industry players, such as asset managers, are inheriting preventive controls.

No anonymous crypto transfers over €1,000

As for example banks, they “will have to verify the identity of their customers, what they own and who controls the company.” These intermediaries will also be required to identify risks and “transmit relevant information to a central registry.”

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MEPs were also keen to introduce restrictions on cash and crypto paymentsanonymous. Payments for goods and services will not be able to be made in cash above 7000 dollars. For crypto, anonymous payments and transfers cannot exceed 1000 euros.

Compliance Director Maha Al-Saadi shares an analysis of regulatory developments on LinkedIn. And among the major changes is the inclusion of DAO, NFT and DeFi platforms. These will now be included in the scope of “obligated entities.”

In short, “platforms will have to comply with the rules and AML regulations whenever they are controlled directly or indirectly, including through smart contracts or voting protocols, by identifiable natural and legal persons.”

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Mixers and privacy wallets on probation

Finally, according to the expert’s reading, anonymous crypto accounts, as well as bank accounts, are prohibited. What about anonymizing tools, including privacy wallets, blenders and other tumblers? They are considered to present a high risk.

The Commission will also assess whether to ban them in the future,” says Maha Al-Saadi. Enough to worry a number of privacy advocates in the crypto ecosystem.

For the French MEP Aurore LalucqThe Parliament, in conflict with various actors of the crypto industry, for example about the social utility of Bitcoin, has obtained “important advances”.

“Crypto, NFT, money laundering: it’s won! MICA partly completed by the European Parliament!”, welcomes the elected representative, who co-carried amendments to strengthen the regulation of the crypto market.

Aurore Lalucq considers “non-existent or incomplete” legislation in this area. If MiCA is to remedy this, however, the MEP believes that one component “was sorely lacking”, namely the regulation of NFTs.

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