EU readies implementation of new regulatory oversight that includes crypto businesses

The BlockNovember 08, 2022

The EU is set to target crypto assets and companies with a new regulatory body called the Anti-Money Laundering Authority (AMLA). Under the package of proposed legislation that targets Anti Money Laundering in a broader scope in in the EU, officials are largely in agreement that this new regulator should also have direct oversight on crypto businesses.
The regulator is set to target crypto firms with direct supervision of certain financial institutions and indirect supervision and coordination of other financial institutions with a central focus on anti-money laundering. This can include, crypto transmitters, crypto exchanges, service providers and other crypto businesses active in the EU.
The timeframe for implementation remains murky and will likely take years. The speed will largely depend on European Parliament and European Commission negotiations. However, there seems to be little disagreement that such a regulatory body is needed for the crypto asset market and its service providers and companies within.
Recent events have evidenced such needs by the blow-up of companies like Celsius and Voyager with flawed business models. Furthermore, the way the regulation is implemented is important as well in regards to its efficacy, while at the same time not hindering innovation in the EU as a whole.