EU Officials Want European Banking Authority To Keep List of Crypto Companies

It’s been just revealed that the members of the European Parliament urge banking authorities to keep track of crypto services that could be used to conduct crimes.

According to a press release, MEPs have adopted new rules mandating the European Banking Authority (EBA) to create a registry of crypto businesses that are at risk of money laundering, terrorism finance, and other criminal activity.

As the online publication the Daily Hodl notes, the rules are part of the EU’s latest vote to clamp down on unhosted cryptocurrency wallets, which requires that crypto exchanges perform know-your-customer (KYC) routines on wallets sending and receiving funds from their platforms.

“MEPs want the [EBA] to create a public register of businesses and services involved in crypto-assets that may have a high risk of money-laundering, terrorist financing and other criminal activities, including a non-exhaustive list of non-compliant providers.”

The same notes continue and read the following:

“Before making the crypto assets available to beneficiaries, providers would have to verify that the source of the asset is not subject to restrictive measures and that there are no risks of money laundering or terrorism financing.”

Ernest Urtasun, co-rapporteur for the EU’s Committee on Economic Monetary Affairs (ECON), stated that the change will close a common loophole criminals use to facilitate their illicit activities.

“Illicit flows in crypto assets move largely undetected across Europe and the world, which makes them an ideal instrument for ensuring anonymity.”

The notes continue and reveal:

“As illustrated by all the recent money-laundering scandals, from the Panama Papers to the Pandora Papers, criminals thrive where rules allowing for confidentiality allow for secrecy and anonymity. With this proposal for a regulation, the EU will close this loophole.”

Check out the official press release in order to learn more details about all this.