What the New EU AML Authority Means For Crypto Exchanges

🌐 It’s official!! The EU's new Anti-Money Laundering Authority (AMLA) will be hosted in Frankfurt! The purpose of this new EU-wide regulator will be to unify AML enforcement across the EU, and to directly supervise large regulated actors, including crypto exchanges. 🌐

🔑 Key highlights: 

1️⃣ Winning Host City (Frankfurt): The location for AMLA's headquarters in Frankfurt centralises the EU's AML efforts, creating a single point of authority with far-reaching implications for financial institutions across the bloc.

2️⃣ Impact on Large Regulated Actors: AMLA will have a profound impact on banks, financial institutions, Electronic Money Institutions (EMIs), and notably, Crypto-Asset Service Providers (CASPs) under the Markets in Crypto-Assets (MICA) regulation. The authority's direct supervision will ensure stringent compliance, especially for entities operating across multiple Member States.

3️⃣ Purpose and Tasks: AMLA's creation is driven by the need for a unified regulatory approach to combat ML / TF effectively. Its tasks include establishing a central database for AML monitoring, direct supervision of high-risk entities, and enhancing coordination among national regulators.

4️⃣ Powers: With the authority to request information, issue guidelines, and enforce compliance through fines and direct actions, AMLA is poised to become a regulator “with teeth” to enforce AML regulation coherently across the EU.

5️⃣ Impact on Large Crypto Institutions: Crypto exchanges and related financial actors will face increased scrutiny, with AMLA's direct supervision ensuring that these entities adhere to the highest standards of AML compliance.

6️⃣ Timeline: The proposal for AMLA was introduced on 20.07.2021, with formal adoption expected in Q2 2024. The authority is set to be fully operational by 31 December 2025, marking a new era in EU AML regulation.