The European Parliament has taken a step towards combating money laundering in the cryptocurrency industry by approving new regulations that establish formal due diligence obligations for crypto companies.
The legislation, passed on April 24, 2024, aims to improve “due diligence measures and identity checks” for customers, extending to entities such as crypto asset managers and centralized crypto exchanges.
TLDR
- The European Parliament has approved new regulations that establish formal due diligence obligations for cryptocurrency companies to combat money laundering.
- The new laws aim to improve “due diligence measures and identity checks” for customers and will impact crypto-asset service providers (CASPs) such as centralized crypto exchanges under the Markets in Crypto-Assets (MiCA) regulation.
- CASPs will be required to report suspicious activities to authorities and follow standard Know Your Customer (KYC)…
