As money theft and fraudulent activities using digital currency becomes popular every day, member states under the European Union are advocating for the organization to set up a strong anti-money laundering (AML) authority that will be given the jurisdiction and authority to operate in the cryptocurrency space. 

Germany Pushes For Cryptocurrency Platforms To Be Under EU Money Theft Surveillance 

Numerous countries in the EU, spearheaded by Germany, have lobbied the institution to give a proposed anti-money laundering (AML) regulator authority over the crypto industry. Bloomberg reported that these countries are concerned that crypto firms would be used for transferring illegally acquired assets.

The European Commission (EC) and other EU institutions are now finalizing the structure of the regulatory agency, which is set to begin in 2024 and extend its functions over two years. According to one EU official who opted to stay confidential, the group is working to obtain a much clearer involvement of cryptocurrency businesses in the regulator’s tasks.

Possible Reason For The AML Agency

Following a string of controversies in recent years that highlighted flaws in the bloc’s regulatory system that allowed fraudulent funds to flow freely, the European Union plans to establish a regulatory agency to curb the situation. Nevertheless, the expanding cryptocurrency market has created a new job for enforcement agencies, as the confidentiality of virtual assets is luring criminals and hostile nations.

Italy, Austria, Spain, Netherland, and Luxembourg are some countries that have pledged their support to Germany’s proposal. The diplomat wants the new European regulator’s mandate to include the riskiest cross-border firms, including banks, other financial firms, and cryptocurrency platforms. The European Commission’s draft from July 2021 only makes a passing reference to “virtual assets.”

The union has refused to comment, and the notion has yet to be discussed by member nations. According to the sources interviewed, it is still uncertain if the adjustments would be well-received. Furthermore, the legislative texts will be decided by the European Parliament. Luis Garicano, a key EU legislator who supports the initiative, stated:

“Given that virtual currencies are one of the most susceptible to money theft operations, it is critical that the AML’s jurisdiction encompasses them explicitly.

Public bodies are currently in charge of countering financial fraud in the Eurozone, which restricts their efficacy and calls into question their autonomy. In the last decade, several big scams have rocked Europe’s financial sector, notably the embezzlement of Russian funds through Latvia’s ABLV and Danske Bank’s Baltic operations.

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