of European Banking Authority (EBA) has expanded its regulatory framework to include virtual currency entities based in the EU. This strategic enhancement targets strengthening anti-money laundering (AML) and counter-terrorist financing (CTF) efforts across the digital asset domain.
The revised guidelines, which will take effect from December 30, require crypto asset service providers (CASPs) to conduct rigorous risk assessments. These evaluations focus on customer profile, product offerings, distribution channels, and geographic spread of operations. The objective is to identify and mitigate potential financial crime vulnerabilities.
Main measures for compliance:
- risk assessment: Cryptocurrency companies must scrutinize potential illegal activities, especially through anonymous transactions, self-custodial wallets, and decentralized platforms.
- Blockchain analysis: Deploying advanced analytics is recommended to track and prevent financial fraud.
The EBA's decision follows the establishment of the Transfer of Funds Regulation (ToFR) and Markets in Crypto Assets (MiCA) framework, which will strengthen investor protection by the end of the year. While EU countries may opt for an 18-month grace period for CASP, the EBA's guidelines are an important step towards a uniform regulatory approach to financial crimes in the cryptocurrency space.