The Crypto market collapse is now tempting every nation to make more strict rules on cryptocurrency-related activities to prevent future disasters. And many major countries have already taken a call for regulating crypto after the collapse.
And now European Union Financial supervisors are also looking forward to making such rules on crypto exchanges for breaching anti-money laundering rules; their license must be canceled if they do so, the supervisors say.
The lawmakers reach the closing stages of landmark legislation known as the Markets in Crypto Assets Regulation, or MiCA. Which introduces an authorization for virtual asset companies within the 27-nation bloc.
The Three European Supervisory authorities further say that the regulatory authorities are responsible for authorizing or registering crypto exchanges and Walter providers should be “empowered to withdraw the authorization/registration for serious breaches of AML/CFT [anti-money laundering and terrorist fiannce] rules.”
The Report, which is looking at whether the anti-money laundering powers contained in rules for different financial sectors are up to scratch says, that MiCA must integrate AML/CFT issues in prudential supervision of entities, whereas MiCA further introduces the requirements for stablecoin issuers to hold sufficient capital reserves and to be monitored by regulators such as Germany BaFin.
“Whether to include stronger AML controls or leave the issue for a separate, wider review of dirty money rules,” is one of the remaining wrinkles in the legislation concerns. Major players and the largest crypto exchanges by volume traded are now registered in EU countries like France and Italy, for which the bloc is toughening its AML laws. This scandal of a string is affecting conventional lenders such as Danske Bank and malta’s Pilatus.