Meanwhile, the European Union’s new Anti-Money Laundering Authority (AMLA) has set its sights on crypto companies. By July 2027, these private firms are required to provide government agencies direct access to their account data. AMLA, headquartered in Frankfurt, started work earlier this month. Its core mission is making sure all 27 EU member states are meeting the minimum requirements set by new EU-wide anti-money laundering rules to stop money laundering and the financing of terrorism. AMLA’s regulation mandates prohibitions on anonymous wallets and privacy coins.
AMLA's Requirements for Crypto Firms
This means that cryptocurrency firms that want to operate within Europe will have to comply with AMLA’s directives in every jurisdiction they choose to operate in. These requirements “can vary greatly” according to the individual EU nation. These implementing regulations will not be fully in effect until July 2027, so advocacy efforts must begin now.
The EU's new AML regulations mandate that cryptocurrency service providers grant "direct, immediate, and unfiltered access" to crypto-asset account data to government agencies. AMLA's regulations mirror the approach taken by comparable regulators, such as the UK's Financial Conduct Authority (FCA).
Focus on Beneficial Ownership
Bruna Szego, chair of AMLA, highlighted the need for a powerful EU crypto AML hand within the bloc. Regulators will assess "the beneficial owner of crypto asset service providers," including shareholders and their locations.
"We need to be sure the owners are not involved in money laundering or terrorism finance." - Bruna Szego
Implications for the Crypto Industry
The adoption of AMLA is a game changer for companies doing business in Europe. Because of its focus on the crypto industry, this is more critical than ever. Anna Holmes noted that crypto firms must comply with AMLA's requirements "in each of the jurisdictions in which they intend to operate." Direct government access to account data is no longer an option. Together with the ban on anonymous wallets and privacy coins, this will require many businesses to implement radical alternatives.
