The European Union is currently taking new steps to regulate the cryptocurrency industry. In this context, the EU is designing a sixth “Anti-Money Laundering Authority”. This new regulatory body will likely reduce the possibility of judicial arbitration between different member states. The European Parliament recently voted in favor of laws targeting cold crypto wallets.
EU institutionalizes its regulation in cryptocurrencies
The European Union wants to create a new crypto regulatory body. In this context, the European Parliament, the European Commission and the European Council are conducting a negotiation. Within this framework, a new crypto regulatory body is being designed that will have direct oversight over the industry. According to new reports, the EU is in the process of designing a sixth “Anti-Money Laundering Authority,” or AMLD6, that will have direct oversight over the crypto industry.
Previous anti-money laundering directives only created frameworks for EU members to collect and share information. However, AMLD6 will reportedly be tasked with monitoring cryptocurrency service providers specifically deemed “high risk.” Therefore, experts expect the regulator to reduce opportunities for judicial arbitration within the region.
The creation of the new institution will depend on tripartite negotiations.
The creation of the new regulatory body will depend on tripartite negotiations between the European Commission, the European Council and the European Parliament. Meanwhile, all bodies express the need for stricter regulations in the sector. However, AMLD6 is still years away from implementation. Also, AMLD6 does not limit itself to the crypto industry. It covers all financial institutions within the block. As such, it will have a different focus from Crypto Asset Markets and Fund Transfer regulations.
It appears that the EU has taken a tough stance against crypto regulations. As you follow on Kriptokoin.com, the European Parliament recently voted in favor of anti-anonymity laws. This will make transfers between cold wallets and exchanges costly, cumbersome or even impossible. The legislature, on the other hand, rejected the proposal to ban Proof-of-Work (PoW) mining. However, the European Central Bank is still waiting for such a ban to happen due to climate concerns.
In addition, the EU brings crypto-assets, crypto-asset issuers and crypto-asset service providers under a regulatory framework for the first time under the MiCA. Within this regulatory framework, it aims to protect investors and financial stability. In addition, it aims to allow innovation and increase the attractiveness of the crypto-asset sector.
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