EU Plans to Establish a New Unit to Fight Cryptocurrencies’ Usage in Illegal Activities

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EU Plans to Establish a New Unit to Fight Cryptocurrencies’ Usage in Illegal Activities

The European Unions plans to establish a new department to fight money laundering and other illegal activities that may use digital assets.

The European Union is set to launch a new agency to take severe measures on money laundering across its borders. Cryptocurrencies have the ability to take part in illicit financial operations as well, and the new department will put them under its scope of regulations.

Crypto Under The Radar of the EU

According to a recent Reuters report, the European Union is looking to propose a new agency to set new transparency monetary rules, to fight money laundering, and even prevent terrorist financing from inside the region.

The department will be named Anti-Money Laundering Authority (AMLA), and one of its tasks would be to pay proper attention to digital assets. According to the EU’s executive European Commission, cryptocurrencies need strict regulation as they might be employed in illegal money laundering operations. What’s more, virtual assets could even fund terrorist organizations:

“The lack of such rules leaves holders of crypto-assets exposed to money laundering and financing of terrorism risks, as flows of illicit money can be done through transfers of crypto-assets.”

Sven Giegold, a German Green Party member of the European Parliament, highlighted the efforts of the European Union. He raised hopes that the combined forces of all government bodies of the Union will lead to better results against monetary crime:

“With uniform standards and more centralized supervision, the EU Commission is introducing important improvements to enable consistent action against financial crime. The EU should in the meantime pursue legal action against EU states that are not enforcing AML rules properly.”

Banque de France Urged Europe For a Quick Crypto Regulation

Recently the governor of the French central bank – François Villeroy de Galhau – sounded a note of caution that Europe’s monetary sovereignty faces tough times if the EU does not regulate cryptocurrencies as soon as possible:

“Whether it is digital currencies or payments, we in Europe must be ready to act as quickly as necessary, or take the risk of an erosion of our monetary sovereignty.”

He did not mention money laundering as an issue when it comes down to the usage of digital assets. Instead, without a regulatory framework around Bitcoin and the altcoins, the euro’s international role would be endangered. In his opinion, the move should be implemented in the upcoming months, or the EU would “lose its momentum:”

“I must stress here the urgency: we do not have much time left, one or two years.”