EU to create new body to regulate cryptocurrencies

The European Union is planning to create an «Anti-Money Laundering Authority» that will be responsible for regulating the cryptocurrency industry. In July last year, the European Commission published a proposal for the Anti-Money Laundering and Countering the Financing of Terrorism (AMLD6), known as the Sixth Directive. And last month, the European Council published its version.

The creation of a pan-European anti-money laundering regulator is a key component of the new legislation. Apparently, AMLD6 will be tasked with monitoring crypto service providers. The regulator is expected to limit the potential for jurisdictional arbitration within the Eurozone.

«The EU-level supervisory authority is authorized to carry out direct supervision of certain financial institutions, as well as indirect supervision (coordination) of those institutions that are not yet covered by the directive. It will also act as a coordinator for the supervision of non-financial sectors of the industry ,» the agency said in a briefing.

For the EU, the newly created organization will mark significant changes. The Anti-Money Laundering Directives of 2015 and 2018, in particular the Fourth and Fifth Directives, set requirements for member states to collect and provide specific data, including on the beneficial ownership of corporations. The duration of the implementation of the Sixth Directive will depend on the negotiations between the European Parliament and the European Commission.