The European Union has passed a voted regulatory framework so that crypto money transfers can be tracked similarly to traditional money transfers. Legislation, which is part of the anti-money laundering package in the European Union, will align with crypto-asset markets regulations (MiCA).
According to the adopted legislation, crypto money transfers will be monitored on the grounds of preventing money laundering, terrorist financing and other crimes, and the persons and institutions making the transfers will be identified. According to the legislation, crypto asset service providers will be obliged to regularly inform the authorities about their activities. Accordingly, service providers will be responsible for identifying the parties to the relevant transfers and reporting the details of the transfer transactions.
Crypto asset service providers operating within the borders of the European Union will have to obtain a license in order to continue their activities in accordance with MiCA regulations, in addition to the obligation to report customer transactions, by providing the necessary conditions.
External cryptocurrency wallets used outside of centralized exchanges and platforms defined as unsupervised will be subject to rules when interacting with wallets controlled by crypto-asset service providers.
While the lower limit for crypto money transfers is determined as 1000 euro, in case of crypto transfer above this value, the service provider will have to have information about the parties of the transfer. On the other hand, regulatory rules will not cover interpersonal transfers that occur without intermediaries without being tied to central platforms.
Ernest Urtasun, a member of the European Parliament, said in a statement after the adopted regulations that the decisions strengthen Europe's hand in the fight against money laundering, reduce fraud risks and open the door to safer crypto asset transactions in the region. In addition, the EU transfer rule will enable crypto-asset service providers to detect and prevent sanctioned crypto addresses and ensure that crypto-asset transfers are fully traceable.