European Union: Adopted Parliament's position on Proposal for a Regulation on information accompanying transfers of funds and certain crypto-assets

On 31 March 2022, the European Parliament Committee on Economic and Monetary Affairs (ECON) and the Committee on Civil Liberties (LIBE) adopted their position on the Commission's proposal on “information accompanying transfers of funds and certain crypto-assets”. The proposal would give all crypto-asset service providers the status of “obliged party” regarding the disclosure of crypto transaction information. This will aid the identification of crypto-assets that are used for money-laundering purposes. The committees proposed several amendments to the original proposal. Firstly, regarding the traceability of transfers of crypto-assets, the committee proposed to mandate the inclusion of information on the source of the asset and its beneficiary for all the transfers of crypto-assets. Secondly, the committee proposed the removal of the minimum threshold and exemptions for low-value transfers, o ensure that all crypto assets transfers can be traced. Finally, the committee proposed the European Banking Authority (EBA) publish a public register of entities that are at high risk of money laundering or other criminal activities. The providers would be thereby obliged to check the list before any crypto-asset is complete.