EU Lawmakers Adopt Anti-Money Laundering Legislative Package Including Crypto Regulations

According to CoinDesk, EU lawmakers have adopted three key texts in a broad anti-money laundering legislative package that will also apply to crypto. In a joint meeting, the Committee on Civil Liberties, Justice and Home Affairs and the Committee on Economic and Monetary Affairs voted for the texts after a political agreement on the package was reached in January. The Anti-Money Laundering Regulation (AMLR) will require crypto service providers to comply with customer verification requirements and monitor cross-border transfers and transactions involving self-hosted wallets. The broader package also sets up an Anti-Money Laundering Authority (AMLA) based out of Frankfurt, Germany. The Joint Committee on Civil Liberties, Justice and Home Affairs and the Committee on Economic and Monetary Affairs voted 68 in favor (10 against) the establishment of the AMLA on Tuesday. Lawmakers voted 71 in favor (four abstentions, nine against) for the provisional agreement on the regulation for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing. Proposed mechanisms to be put in place by the EU's 27 member states were agreed 74 with five votes against. The three files voted on Tuesday are fundamental to the EU's fight against money laundering and will establish a single rulebook to harmonize implementation across the bloc. Though the regulation seeks to level requirements for all players in the financial sector, the European crypto industry worries the agreed rules for crypto service providers are harsher than those for traditional financial institutions. Edited by Parikshit Mishra.