EU Targets NFTs as Part of AML Procedures
Non-fungible tokens (NFTs) are now under the EU’s scrutiny as the Union is determined to keep fighting illicit financial activity.
The European Union has toughened anti-money laundering and the financing of terrorism laws yet again. This time, the Union, which brings together 27 European member states, has targeted NFTs.
In a tweet, a Member of the European Parliament, Aurore Lalucq, revealed the vote details.
“One of the major advances of this vote: NFT exchange platforms must now follow legal obligations in the fight against money laundering and the financing of terrorism,” she wrote, adding that the EU is slated to introduce a 1000€ cap on anonymous transactions.
Those exceeding this ceiling will be obliged to provide their IDs.
In addition, the European Anti-Money Laundering Authority will be able to establish a list of platforms, including those based outside the EU, that are likely to pose risks of money laundering or terrorist financing.
“Labor and business relationships with unregistered or unlicensed platforms and entities will be prohibited. An indicative and non-exhaustive list of these entities will be established by #AMLA,” she wrote.
The E.U. still needs to develop a harmonized regulatory framework on crypto assets.
The vote comes against the backdrop of increased regulatory measures introduced by the U.S. Securities and Exchange Commission (SEC) in the US, and in February, the SEC accused Kraken of offering unregistered securities in its staking service.
The company agreed to settle the case and discontinue the service.
Coinbase, which also provides staking services, has already addressed the SEC, explaining the difference of their service. The explanation, however, seems to have fallen on deaf ears.
Previously, Gagarin News reported that Treasury Minister Andrew Griffith revealed on Monday that the Royal Mint would not proceed with the NFT launch for now but would continue to review the proposal.
