EU implements cryptocurrency regulations in efforts to tackle money laundering

The European Parliament has given its approval to new regulations aimed at combatting money laundering by imposing formal due diligence obligations on cryptocurrency companies. The laws will enhance measures for verifying customer identities and implementing due diligence, and will require entities such as crypto asset managers to report any suspicious activities to authorities. The legislation will impact crypto-asset service providers, including centralized crypto exchanges and gambling services, under the Markets in Crypto-Assets (MiCA) regulation. MiCA is a regulatory framework introduced by the European Union to oversee digital assets and their markets, and will be fully enforceable by the end of this year. The Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA), a newly established agency, will oversee and supervise the implementation of the new rule from its office in Frankfurt, Germany. The legislation has yet to be formally adopted by the Council and published in the EU Office Journal.