A number of amendments prepared by members of the European Parliament regarding the anti-money laundering (AML) and counter-terrorist financing (CTF) rules could make big changes to the regulatory environment in Europe, according to a draft report leaked to the media.
"Travel" rule, which imposes provisions on identity verification when transferring funds using so-called unattended wallets, which previously caused a stir in the industry, seems to have been removed.
However, the new amendments expand the scope of the regulation, including decentralized autonomous organizations (DAO), decentralized finance protocols (DeFi) and their developers, as well as people trading NFT. The metaverse is also seen as a potential money laundering environment, and crypto asset service providers may also be required to comply with AML rules when dealing with transactions worth more than 1,000 euros.
These provisions are the result of combining amendments proposed by parliamentary groups into compromise rules that try to cover all different points of view.
The amendments still have to go through a number of hurdles before they are officially adopted. First, they need to pass a vote to enter the European Parliament's report on AML regulation. Then the final report must be voted on at the plenary session with all committees of the Parliament. After that, the report will be presented to the Parliament in the interdepartmental debates on AML.
The final report on the position of the parliament is scheduled for December, and technical meetings on the AML report are scheduled before that.
