The EU Parliament, EU Council and EU Commission have reached provisional agreement to regulate what one of its lawmakers termed the ‘crypto Wild West’.
An anti-money laundering body is closer to formation following the agreement on some of the details. This will supervise “high-risk and cross-border financial entities… if they are considered risky”.
European Parliament member Ondřej Kovařík said EU officials had also reached a provisional political agreement on the Transfer of Funds Regulation, which will oblige crypto-assets service providers (CASPs) in the EU to collect data on transactions with unhosted wallets.
The TOFR rules apply to every transaction, no matter how small – including ATM withdrawals – and requires that the identities of an unhosted wallet’s owner are verified on transactions above €1,000.
The rules will become effective 18 months after the MiCA regulation is applied.
“We are putting an end to the Wild West of unregulated crypto, closing major loopholes in the European anti-money laundering rules,” said European Parliament member Ernest Urtasun.
“The rules won’t apply to P2P transfers where there is no obliged entity involved.”