European Union (EU) leaders are working to set up strict oversight of crypto firms to combat money laundering and terrorism financing, according to a Bloomberg report.
- A group of EU member states is seeking to give the bloc's new anti-money laundering (AML) watchdog oversight into cryptocurrency firms, according to the report, published Tuesday.
- The group is led by Germany and includes Spain, Austria and Italy, Bloomberg said, citing an unidentified EU diplomat. "They want the EU watchdog’s remit to cover the riskiest cross-border entities among banks, financial institutions and crypto assets service providers," the diplomat said.
- The establishment of an AML authority was proposed by the European Commission, the EU's executive arm responsible for proposing legislation, in July 2021. The authority's mandate is the direct and indirect AML supervision across the bloc's 27 member states.
- The proposal does not go into detail when it comes to virtual assets.
- The Commission expects the AML authority to be operational in 2024.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.