European Union: Adopted Provisional Agreement for Crypto-Asset Service Providers on the prevention of money laundering and financing of terrorism

On 18 January 2024, the European Parliament and the Council reached a provisional agreement on parts of the regulation that exhaustively harmonises anti-money laundering rules throughout the European Union. The regulation expands the list of obliged entities to include all crypto-asset service providers (CASPs), requiring them to conduct due diligence on their customers. This includes verifying facts and information about their customers and reporting suspicious activity. CASPs will need to apply customer due diligence measures when carrying out transactions amounting to €1000 or more. The regulation also introduces measures to mitigate risks in relation to transactions with self-hosted wallets. The text will be finalised and presented to the Committee of permanent representatives and the European Parliament for approval.