The European Banking Authority has published a report on tackling money laundering and terrorist financing risks in crypto-asset services, covering issuance, trading and service provision. Drawing on recent supervisory cases across the EU, it sets out how competent authorities can strengthen their approaches to the authorisation and ongoing supervision of crypto-asset service providers and issuers as the Markets in Crypto-Assets Regulation framework is implemented. The report consolidates lessons from supervisory actions taken before and immediately after the new EU framework took effect, and reflects insights gathered through the EBA’s engagement with national supervisors, the European Supervisory Authorities and third-country authorities since crypto-asset businesses entered the EU anti-money laundering and countering the financing of terrorism regime in 2018. It identifies significant sector vulnerabilities, describes tactics used by some firms to sidestep national AML/CFT supervision, highlights safeguards introduced by MiCA and the revised AML/CFT regime, and points to the core elements expected to underpin effective application of the enhanced framework.

Original source View in tracker