European crypto companies face new challenges as regulators tighten their grip. The European Anti-Money Laundering Authority (AMLA) is implementing strict measures for sector control.
AMLA Takes Over New Regulations
The European Anti-Money Laundering Authority (AMLA), now operational in Frankfurt, has introduced new compliance requirements for crypto platforms. According to AMLA President Bruna Szego, it is essential to protect the bloc against risks associated with the crypto sector. Exchange platforms, custodial wallet providers, and crypto ATMs will now be required to declare their beneficial owners, aiding in the identification of potential money laundering schemes.
Ban on Anonymous Wallets Starting 2027
As of July 2027, Europe will fully ban anonymous wallets and privacy-focused cryptocurrencies like Monero and Zcash. Companies will have to provide authorities with direct access to crypto account data, fundamentally challenging the notion of anonymity that cryptocurrencies are built upon.
Comparison with US Regulations
This regulatory tightening in Europe sharply contrasts with the United States, where a trend towards more favorable norms for the crypto sector is observed. This divergence may lead crypto companies to favor the US market, creating a migration towards more lenient jurisdictions.
In summary, while MiCA laid the foundation for a regulated crypto market in Europe, AMLA intends to impose stricter oversight. Such actions could prompt a technological exodus to more favorable jurisdictions.
