European Commission to update European Union rules to control cryptocurrencies

The European Commission (EC) presented new proposals to strengthen the rules of the European Union (EU) to combat money laundering and terrorist financing, proposing new rules to control cryptocurrencies. This is stated in a message on the website of the EC on July 20.

“Our package of laws expands our efforts to prevent dirty money from being flushed through the financial system,” the EC said.

The law aims to improve detection of suspicious transactions and activities and close loopholes used by criminals to launder illicit proceeds or finance terrorist activities through the financial system.

The package of laws consists of four legislative proposals. In particular, the EU intends to ban anonymous wallets for crypto-assets. The measure would ensure full transparency of the circulation of crypto-assets and enable the prevention and detection of their possible use in money laundering or terrorist financing.

“Money laundering is a clear threat to citizens, democratic institutions and the financial system. The magnitude of the problem cannot be underestimated, and loopholes that criminals can exploit must be closed,” said Commissioner with responsibility for Financial Services, Financial Stability and Capital Markets Union Mairead McGuinness.

Coordination and cooperation between authorities in EU member states and a new association body to combat illegally obtained funds will also be strengthened.