EU Inks Deal On Crypto Transfer Tracing Rules

The European Union (EU) has agreed on new rules that will subject cryptocurrency payments to the same money-laundering restrictions as traditional banking transfers, according to the Associated Press (AP).

Photo Insert: The EU institutions are now working out the technical details before the rules receive final approval.

Late Wednesday, EU negotiators struck a provisional deal for the 27-nation bloc's first rules on tracing transfers of crypto assets such as bitcoin, with the goal of cracking down on illicit transfers and preventing questionable transactions.

According to the new laws, when a crypto asset is transferred, information about both the source and the beneficiary must be stored on both sides of the transaction. Crypto firms would be required to provide this information to authorities investigating illicit conduct such as money laundering or terrorism financing.

“For too long, crypto-assets have been under the radar of our law enforcement authorities,” Assita Kanko, one of the lead EU parliamentarians negotiating the guidelines, said in a statement. “It will be much harder to misuse crypto-assets and innocent traders and investors will be better protected.

The EU institutions are now working out the technical details before the rules receive final approval.

Negotiators were also due to finalize details on a separate agreement for a comprehensive package of crypto laws known as Markets in Crypto Assets, or MiCA, late Thursday. They are part of the EU's drive to take the global lead in reining in the rogue cryptocurrency industry at a time when values have plummeted, wiping away riches, fuelling suspicion, and spurring calls for tougher regulation.

The crypto rules are expected to have a global impact, similar to the EU's pioneering data privacy policies, which became the de facto global standard.

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