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EU AML Crypto Rule Update: European Union Moves Toward Full Transaction Traceability

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Ethan Hest
EU AML Crypto Rule Update: European Union Moves Toward Full Transaction Traceability

The use of Convertible Virtual Currencies (CVCs) or “crypto” for illicit use has risen sharply this year. Fines and restraining orders are being levied against fintech organizations, banks, and crypto-asset firms who fail to comply with anti-money laundering and transaction record-keeping regulations. Up until this point, the European Commission, which is the executive branch of the European Union (EU),  and the Financial Action Task Force (FATF) haven’t implemented strict rules related to transaction traceability. That is about to change. 

The Financial Action Task Force (FATF) proposed a law to apply the travel rule to cryptocurrency transactions, effectively making them completely traceable. The Travel Rule requires businesses who are engaged in or are an intermediary to, cryptocurrency transactions to collect and share the personal data of participants in a transaction. This rule already applies to wire transfers such as those completed through a bank or Western Union.

For more info: https://www.idmerit.com/blog/eu-aml-crypto-rule-update-european-union-moves-toward-full-transaction-traceability/

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Ethan Hest
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