2024

Diligence

<p><strong>The European Union (EU) supports greater transparency in the conduct of crypto activities. This is indicated by the recent partnership between the European Council and Parliament to strengthen due diligence measures required of crypto companies in the execution of their operations.</strong></p>
<h2 id="h-due-diligence-obligations-for-crypto-transactions-over-1-090">Due Diligence Obligations for Crypto Transactions Over $1,090</h2>
<p>The <a href="https://www.cointribune.com/en/dernieres-evolutions-de-la-reglementation-crypto-dans-lue-et-aux-usa-en-2023-2/" target="_blank" rel="noopener noreferrer nofollow">European Union (EU)</a> has agreed upon enhanced due diligence rules targeting crypto enterprises. These measures, part of the institution’s fight against money laundering, mark a significant regulatory advancement.</p>
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<p>Indeed, this <a href="https://www.theblock.co/post/273286/eu-stricter-due-diligence-crypto-firms?utm_source=telegram1&amp;utm_medium=social" target="_blank" rel="noopener noreferrer nofollow">development</a> means that crypto firms will be expected to exercise greater diligence concerning their clients. In particular, when they are involved in crypto transactions exceeding €1,000 ($1,090).</p>
<p>This measure, stemming from an agreement between the European Council and Parliament, has a specific objective. That is, to mitigate the risks associated with financial transactions in the crypto sector through enhanced transparency.</p>
<p>Furthermore, the agreement introduces specific measures addressing concerns related to transactions involving self-hosted wallets. The goal is to increase security and reduce the likelihood of conducting illicit activities through these wallets.</p>
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     <p lang="en" dir="ltr">EU provisionally agrees on stricter due diligence rules for crypto firms<br>If approved, the proposed rules would require crypto firms to conduct due diligence on transactions worth at least $1,090.</p>— TCM Crypto Club (@tcmcryptoclub) <a href="https://twitter.com/tcmcryptoclub/status/1747909479746650408?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 18, 2024</a>
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 <figcaption class="wp-element-caption"><em>The EU reaches a provisional agreement on enhanced due diligence rules for crypto firms</em>
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<h2 id="h-rules-awaiting-approval">Rules Awaiting Approval</h2>
<p>In their current state, these standards are not applicable. The effectiveness of their implementation is still essentially contingent on the green light from Parliament. It will, therefore, have to formally agree on texts with the Council.</p>
<p>These texts will need to be adopted and then published in the Official Journal of the European Union. It is only after this formal regulatory process that these rules will fully apply to the crypto firms concerned.</p>
<p>It should be noted that this development is part of a general global trend of regulators taking a close interest in the functioning of the crypto sector. Recently, for example, the European Banking Authority has extended its guidelines on risk factors for money laundering and terrorist financing to the crypto industry.</p>
<p>This is clearly a sign of a collective effort to address potential vulnerabilities and illicit activities prevalent in the crypto ecosystem. This is done by aligning regulatory practices with the particularly evolutionary nature of these financial technologies.</p>

The EU is taking strong measures against money laundering in the crypto sector

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