European Union negotiators on Wednesday reached a provisional agreement on anti-money laundering rules for cryptocurrencies that would spur crypto firms to check their customers’ identities; in the latest regulatory tightening of the freewheeling sector.
The rules, opposed by major U.S. exchange Coinbase Global Inc (COIN.O) would; also require crypto firms to report suspicious transactions to regulators to help crack down on dirty money.
Regulation of the $2.1 trillion crypto sector remains patchy across the world.
Once written, the rules require approval by several bodies to take effect. The oversight would ensure that crypto assets can be traced in the same way as traditional money transfers.
On Wednesday, the European Parliament and Council said the proposed rules would also cover ‘unhosted’ crypto wallets; held by individuals and not managed by a licensed crypto exchange, for transactions exceeding 1,000 euros ($1,044.20) with service providers.
-Reuters.
