EU Implements Stricter Rules on Crypto-Asset Transfers and Information Sharing
May 16, 2023

The European Union has taken significant steps to strengthen anti-money laundering measures, particularly concerning crypto-assets. The Council has approved updated rules that expand the scope of information requirements to cover transfers of crypto-assets, ensuring financial transparency and compliance with international standards. Under these regulations, virtual asset service providers are obligated to collect and provide information about the originators and beneficiaries of virtual asset transfers. They must also share this information with counter parties and make it available to competent authorities upon request.

In addition, payment service providers involved in transfers of funds must ensure the inclusion of specific information on the payer and payee. This includes details such as names, payment account numbers, addresses, and legal identifiers where applicable. These requirements are crucial for facilitating traceability and enabling the identification of suspicious transactions, thereby enhancing efforts to prevent money laundering and terrorist financing.

Overall, the objective of this regulation is to promote transparency and traceability in both fund transfers and crypto-assets within the EU. By imposing stricter information-sharing obligations and complying with international standards, the EU aims to prevent the misuse of crypto-assets for illicit purposes and strengthen its anti-money laundering and counter-terrorism financing framework.