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EU Authority Increases Scrutiny on Crypto Firms Amid New Regulations

The European Union's Anti-Money Laundering Authority (AMLA) has raised alarms for cryptocurrency firms as it gears up for the implementation of strict new regulations.

Bruna Szego, AMLA's chair, emphasized the necessity of safeguarding the region from money laundering and terrorism financing risks associated with virtual asset service providers.

The authority, which became operational this month, is responsible for ensuring compliance with its comprehensive anti-money laundering framework across 27 EU member states.

In a recent interview, Szego outlined the responsibility of regulators to pinpoint the beneficial owners of crypto service providers to eliminate ties to illicit activities.

She highlighted current challenges in the EU's crypto landscape, including inconsistent controls across nations and the fragmented market structure under the Markets in Crypto-Assets (MiCA) framework.

Experts like Anna Holmes stress the importance of legitimate entities being prepared to meet AMLA requirements, which can vary significantly by jurisdiction.

The upcoming regulations will hinder cryptocurrency service providers from dealing with anonymous wallets and privacy coins, aiming for transparency and traceability.

From July 2027, these firms will be expected to provide unfiltered access to crypto account data for governmental investigations, a move aimed at enhancing regulatory oversight.

These developments come on the heels of previous penalties against crypto platforms, such as Binance, highlighting an ongoing crackdown on compliance failures in the crypto sector.

As the EU fortifies its regulatory framework, the increased scrutiny on cryptocurrencies signals a commitment to uphold democratic integrity and prevent financial misconduct.