In the EU countries, great attention is paid to the fight against money laundering. It is worth noting that the governments of many countries have already managed to achieve quite good results in this industry. However, there are still no comprehensive tools for regulating cryptocurrencies. That is why the European Parliament recently began to consider extending AML standards to crypto companies, including NFT marketplaces.
Details
Members of the European Parliament are sure that, at the moment, clear rules for the regulation of cryptocurrencies have not yet been developed; therefore, a proposal was made to amend the existing legislation, which involves the extension of AML standards to the crypto world.
It was supported by deputies from the Green Party and the Socialists. In their opinion, decentralized organizations or DeFi sites should be subject to AML / CFT procedures, “regardless of their identification as a DAO or DeFi.”
Thus, software developers should take into account the possible risks of money laundering, as well as take appropriate actions to minimize them.
This standard should also cover centralized and decentralized crypto exchanges and crypto-wallets.
If the amendments are adopted, this will also affect NFT sites and intermediaries in the sale of non-fungible tokens. The authors of the modifications are sure that such platforms can also be involved in money laundering, so they should also be subject to the primary law.
The Financial Times, one of the most respected financial publications in the world, reports that the European Central Bank is concerned about the development of regulation for the industry by individual countries before the adoption of uniform EU rules for the cryptocurrency market. According to the ECB, there is a need to discuss with all countries that are members of the EU the need to synchronize work and act together.
Earlier, the Council of the European Union and the European Parliament had previously agreed on the provisions of the MiCA cryptocurrency regulation bill. It describes the rules for issuers of unsecured crypto assets, stablecoins, trading, and custodial platforms. But these provisions did not affect the regulation of NFTs. It is assumed that in the next year and a half, the relevant authorities will make appropriate changes to the legislation.
How are cryptocurrencies regulated in the EU today?
Earlier, the European Court recognized cryptocurrencies as a means of paying for goods and services.
After that, different countries began to develop individual rules for their regulation. So, all countries can be divided into 2 main categories: those that regulate cryptocurrencies as goods and electronic money.
For a crypto company to operate legally, it must obtain a license. It is the easiest way to do this in Lithuania, Estonia, and Poland. Approvals obtained in these countries also apply to other EU countries.
So, for example, in Lithuania, there are 2 types of licenses: crypto exchanges and wallets. If desired, the company can obtain 2 permits at once.
You can buy, store or use cryptocurrencies to pay for goods and services without taxation. It allows the crypto industry to develop harmoniously in this region.
Conclusion
The European Parliament is actively working to develop legislation to regulate cryptocurrencies. It is assumed that shortly laws will be created to handle the crypto industry fully. These rules are expected to be less stringent than those in the US and countries that have banned their use entirely.