European Crypto Firms Will Require to Identify Most Crypto Transactions

The European Union lawmakers have reached a deal on a new crypto-related bill that aims to clamp down on crypto money laundering activity.

The European Union is the biggest region in the world, in which huge numbers of countries are living under a crypto single regulatory framework. However, rules in European countries are not clear & enough to regulate the crypto industry but still, lawmakers are doing their best. Since 2021, the MiCA agency has proposed its unique & strict framework to regulate the crypto & blockchain industry but not all EU countries agree to adopt it.

On 29 June, EU policymakers reached a deal on a new digital assets transactions associated monitoring bill that aims to prohibit crypto money laundering activity.

Under the newly proposed bill, all the crypto exchanges including crypto-related services providers will be required to track and report suspicious transactions or transactions linked with any illegal activities. And also there is no minimum threshold labeled, in short, it will prohibit every small & big actor on centralized services.

All the crypto companies will be required to report the transactions associated with the centralized platform to non-hosted or non-custodial wallets. However, un-hosted crypto wallet to un-hosted wallet transactions will remain uncovered under this law. 

Ondrej Kovarik, a lawmaker of the EU, also took to Twitter to share about this bill.

This bill will further go under the regulatory framework of Markets in Crypto-assets rules (MiCA). 

Recently 27 EU state members agreed to follow the single regulatory firm of MiCA. 

These efforts by the EU policymakers showed that they are concerned about the issues associated with cryptocurrencies and they want to keep the bad actors away from the Crypto industry.

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