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
- 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