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European Union all set to launch Anti-Money Laundering Authority 

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In a leaked document reported by Reuters, it appears that the E.U. is preparing to launch a new Anti-money Laundering Authority (AMLA) that aims to further regulate cryptocurrency companies. 

According to the document, the European Commission has proposed a new AMLA which would include national regulators to curb the rising money laundering incidents in the region. 

Reuters said European lawmakers have started drafting new requirements for virtual asset service providers (VASPs) which include stricter data collection standards. 

Bringing crypto under regulation

The news agency also added that lawmakers are moving fast to bring cryptocurrencies under EU regulations because these digital assets are not yet within its authority. 

This recent move from the government is highly important because the lack of a crypto regulatory body would certainly give rise to illegal activities. These activities include money laundering and crypto-funded terrorism acts which could easily hide behind crypto transactions. 

Under pressure

Pressure is one of the major reasons why the EU has started forming stricter guidelines for its anti-money laundering policies. 

In 2018, Denmark’s largest bank, Danske Bank, was caught in a scandal involving $200 billion euro worth of illegal transactions which have passed through its Estonian branch. 

After the incident, a growing number of member states have called the EU to implement stricter policies to prevent the incident from happening again.

And with the advent of cryptocurrencies, the Danske Bank incident could certainly happen again, but faster and more untraceable. That’s why lawmakers are scrambling to regulate cryptocurrencies because of their major features that can be used by criminals and terrorists for their illegal transactions. 

Image courtesy of Cointelegraph News/YouTube

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Source: https://bitcoinerx.com/blockchain/european-union-all-set-to-launch-anti-money-laundering-authority/

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