The European Parliament has approved new rules mandating cryptocurrency agencies to conduct due diligence to combat money laundering. The regulations impact all crypto-asset service providers (CASPs) under the new Markets in Crypto-Assets (MiCA) law, including casinos accepting UK players not connected to GamStop that use crypto.
All crypto exchanges in the European Union will have to adhere to the new regulations, containing due diligence standards. Services like exchanging crypto for fiat and providing custody wallets will now take a new approach due to rapid technological developments and advancements in FATF (Financial Action Task Force) standards, reported specialized media CryptoDaily.
Patrick Hansen, Circle’s EU Strategy and Policy Director, explained on X (formerly Twitter) how the new law works. In a thread, Hansen showed that CASPs will not be allowed to offer services to anonymous accounts, a regulation already enforced by existing anti-money laundering (AML) laws. MiCA also prohibits inherently anonymous cryptocurrencies.
A new Frankfurt-headquartered agency called the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA) will be in charge of enforcing the new rules for due diligence. While the law has yet to be formally adopted, it is expected that the AMLA will be fully responsible for supervision once done.
The new rules governing the use of digital assets across the EU have been touted as a key measure to provide clarity to the industry.
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