In response to the growing concerns surrounding money laundering and illicit activities, the European Parliament on the 24th of April approvedThe rules will particularly affect Crypto-Asset Service Providers , including centralized exchanges under Markets in Crypto-Assets regulations.
The latest developments have led to a prominent question – Is the EU banning anonymous crypto transactions or self-custodial wallets?Well, a key highlight here is the establishment of a new regulatory body, the Authority for Anti-Money Laundering and Countering the Financing of Terrorism , which is tasked with overseeing and enforcing the regulations.
This emphasizes that obligated entities , including financial institutions and crypto-asset service providers , must adhere to the Anti-Money Laundering and Countering the Financing of Terrorism framework. However, the AMLR imposes obligations only on OEs and service providers, excluding hardware/software providers or self-custody wallets without access/control over crypto assets.“The new laws include enhanced due diligence measures and checks on customers’ identity, after which so-called obliged entities have to report suspicious activities to FIUs and other competent authorities.”