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New EU Proposal Aims to Keep A Tighter Regulatory Grip On Crypto Transfers

By Chris Torres | July 21, 2021

The European Commission has reportedly put up a new proposal for tightening regulations in the crypto sphere, via making it mandatory for crypto providers to retrieve extra AML data.

Specifically, the proposal reportedly has a primary goal of putting an end to the widespread money laundering activity across the EU, through collecting additional data from the individuals using crypto for money transfers. 

Under this proposal, it is obligatory for service providers to retrieve the name of the originator of the transfer, as well as the account number, the existing location of the account, and the place it is used to carry out the transaction. 

The originator’s address, official personal document number, customer ID number, or date and place of birth are reportedly a few additional data that needed collecting also. 

Service providers would similarly have to make sure that the transfer is finalized with the name and account number of the beneficiary, together with data revealing the existence of the account. 

The beneficiary’s crypto-asset provider would additionally have to establish procedures dedicated to determining whether the data from the originator of the transfer is included or is missing.

The requirement for the above additional data would reportedly be initiated as soon as a transfer crosses the 1,000 euros benchmark, or when a series of payments seems to be linked, and the total surpasses 1,000 euros. 

“In order not to impair the efficiency of payment systems and crypto-asset transfer services and in order to balance the risk of driving transactions underground as a result of overly strict identification requirements against the potential terrorist threat posed by small transfers of funds” The proposal further read.

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