The EBA has required payment service providers (PSPs) and crypto asset service providers (CASPs) to provide personalized verification of counterparties and payment information for violations of measures to combat money laundering, terrorist financing and other financial crimes.
In addition, mandatory reporting requirements are introduced for PSP and CASP to regulatory agencies on the detection of suspicious transactions, monitoring and assessment of potential risks. Companies must also develop methods to combat financial crimes involving digital assets.
The supervisory authority explained that deficiencies in controls, internal policies and procedures for regulating the activities of PSP and CASP may pose risks for financial institutions of the European Union.
For the first time, the pan-European authority sets common EU standards for cryptocurrency companies regarding governance mechanisms, policies, procedures and controls.
Previously, the European Banking Authority issued recommendations allowing crypto market participants to classify digital assets in accordance with the EU Cryptocurrency Act (MiCA).
Source: Bits
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