The European Banking Authority (EBA) has proposed new measures to strengthen Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) compliance standards for crypto asset providers.
In a consultation paper published on November 24th, the EU regulatory agency highlighted inadequacies in existing regulations and invited feedback from stakeholders.
The proposal aims to improve the detection of missing or incomplete information on fund transfers, which can enable financial crimes. To this end, the EBA suggests repealing 2017 guidelines and consolidating procedures within the legislative framework.
The rules would apply to Crypto Asset Service Providers (CASPs) like exchanges and custodial wallet providers.
Significantly, CASPs may soon be required to collect and maintain information on self-hosted crypto addresses. When transfers from such addresses exceed €1,000, CASPs would need to identify the owner and verify their control of the address. While the threshold’s timeframe is unspecified, this measure closes an information gap exploited by criminals.
By improving transparency and oversight, the consultation paper represents an important step toward preventing the abuse of crypto assets. The public now has until February 26th to submit commentary to the EBA before finalized rules are issued.
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