Europe cancels AML amendment that would have forced identity verification for non-custodial wallets: report

Europe cancels AML amendment that would have forced identity verification for non-custodial wallets: report

Amendments drafted by European Parliament members on anti-cash laundering (AML) regulation removed provisions in search of compulsory identification for crypto transfers involving non-custodial wallets, according to crypto information outlet The Block noted on Thursday.

See linked short article: EU seeks to limit banks’ crypto exposure 

Fast details

  • Non-custodial wallets refer to people wallet addresses where customers individual the non-public key.
  • In June, the EU reached a provisional offer to lengthen the so-termed “Travel Rule” to include digital assets and assure that crypto transfers, including those involving non-custodial wallets, can generally be traced for blocking suspicious transactions. 
  • The “Travel Rule” refers to a evaluate to observe the supply and whereabouts of funds, and it calls for that information on the resource of money and their beneficiaries be disclosed alongwith the transactions.
  • In addition to slashing the non-custodial wallet from the “Travel Rule,” the AML amendment will grow the scope of the regulation to the decentralized autonomous organizations (DAOs), decentralized monetary (DeFi) , NFT and metaverses, in accordance to The Block.
  • The modification will also need crypto asset assistance companies to adhere to AML regulations when processing transactions around 1,000 euros (US$984), in accordance to The Block.
  • The amendment is pending approval by the European Parliament, The Block claimed.

See linked write-up: Bitcoin, evidence-of-operate ban taken off from European Union’s MiCA 

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