The European Parliament has highlighted the importance of anti-money laundering (AML) and anti-terrorist financing (ATF) when dealing with cryptocurrency assets.
The European Parliament published a draft document on the proposal for a regulation of the European Parliament and of the Council on markets in crypto-assets and amending directive.
It said that issuers of asset-referenced tokens should draw up an appropriate plan for an orderly winddown. The paper added that this should also be required of crypto-asset service providers due to the risk factor involved.
“AML and ATF must be a key concern when dealing with crypto-assets,” a justification in the document said.
“The added value of crypto for users stems from their cross-border and digital use as a means of payment and exchange.
“This is another reason why a level playing field between established payment service providers and new market participants must be ensured according to the principle of ‘the same rules for the same risks’.”
The document also recognised the possible effect that e-money tokens can have on security of monetary in the euro area.
“E-money tokens can achieve market volumes which might have an impact on monetary security in the euro area,” another justification in the document read.
“This should be taken into account by giving the European Central Bank the appropriate decision-making power.”