Cryptocurrencies is a topic that is in the news every day. Surely in your environment there are many people who have decided to bet on them and others who are bored to hear about it. Whoever starts in the world of cryptocurrencies is likely to not know very well how to protect them and keep them safe. The authorities are aware of the transactions carried out with them and now the European Union wants to monitor them even more closely.
Cryptocurrency mining consists of a resolution of mathematical calculations through the power of computing. There are many users who, with a suitable computer team in charge of performing calculations, process a series of transactions that give rise to sealing blocks. Once we seal a block, we get cryptocurrencies. As with physical money, it is important to protect our cryptocurrency portfolio and be aware of the transactions we carry out with them.
Supervision of illicit transactions in 2024
The EU, in coordination with other authorities, reportedly plans to have its financial watchdog group tasked with monitoring illicit transactions by crypto companies. This is the same group that deals with money laundering.
As reported by Bloomberg , a group of EU member countries led by Germany that includes Spain, the Netherlands, Italy, Austria and Luxembourg are planning to include cryptocurrency companies in the scope of control of the body that focuses on combating the money laundering. That is, the Anti-Money Laundering Authority of the European Commission, which was proposed for the first time on July 21, 2021. According to the information handled by the media, this group would begin operating in 2024 and would be fully functional in 2026.
Increased cryptocurrency surveillance forecast for 2024
Focused on high risk transactions
An anonymous EU member official reportedly claimed that the inclusion of cryptocurrency companies in the remit of the anti-money laundering watchdog group is intended to provide more explicit coverage of cryptocurrency transactions in line with the framework of the EU regulations related to financial services.
The media outlet reported that this official wanted the group to focus on high-risk cross-border transactions “facilitated by cryptocurrency service providers, in addition to banks and other financial institutions.” However, this is a task of evaluation and discussion by the member countries of the EU.
“It is key that the scope of the new EU authority explicitly includes crypto assets , given that it is one of the fields most prone to money laundering activities,” said Luis Garicano, a member of the European Parliament.
The new body will implement uniform rules and oversight requirements for customer checks, cash limits and reporting across the block.