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EU Lawmakers Want Anti-Money Laundering Rules To Cover NFTs

NFT

cryptonews.com 05 July 2022 07:33, UTC
  
Reading time: ~3 m

Source: AdobeStock / denisismagilov

With the European Union advancing work on new regulations that could exert a significant impact on the crypto industry, a group of members of the European Parliament have proposed an amendment to the bloc’s anti-money laundering (AML) legislation that would cover non-fungible token (NFT) trading platforms with its provisions.

The NFT-related amendment is part of a larger package of proposals submitted by European lawmakers, dubbed Preventing abuse of the financial system for money laundering or terrorism purposes.

The proposal was put forward by two green MEPs, Ernest Urtasun of Spain and Denmark’s Kira Marie Peter-Hansen, along with two socialist lawmakers, France’s Aurore Lalucq and Csaba Molnár of Hungary. Should this amendment be implemented into the final version of the AML bill, NFT platforms would become “obliged entities” covered by its rules.

The four MPs want the EU to extend the legislation’s coverage to “crypto-asset service providers, trading or acting as intermediaries for importing, minting, sale and purchase of unique and not fungible crypto-assets that represent ownership of a unique digital or physical asset, including works of art, real estate, digital collectibles and gaming items and any other valuable,” according to the submitted provision.

As part of the EU’s complex legislative process, informal tripartite discussions, also known as trilogues, can end with provisional agreements on the draft legislation by European institutions. These agreements are first informal, and they subsequently require to be formally approved by each of the three institutions: the Parliament, the Council of the European Union, and the European Commission.

At the same time, this week, the European Central Bank is expected to warn eurozone countries about the perceived dangers of national regulators acting before the designed EU cryptoasset rules are introduced. The bank is to highlight the difficulties of implementing efficient oversight of the sector, The Financial Times reported.

The latest development comes shortly after the European Parliament and the Council of the European Unionreached a provisional agreement on the Transfer of Funds Regulation (TFR) that is to ensure crypto transfers can be traced and transactions considered as suspicious blocked, potentially paving the way for tougher enforcement by the EU.

Among other things, the bill extends Brussels’ supervision over so-called 'unhosted wallets' in what many industry representatives call a harmful measure that could hamper the sector’s development in Europe.

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Learn more: 
- 'More Work to Be Done' as EU Imposes Strict New Crypto Regulations
- EU Institutions Reach Provision Agreement On Controversial 'Unhosted Wallets' Regulation

- Two European Parliament Committees Pass Controversial Crypto Regulation of 'Unhosted Wallets'
- EU Institutions to Continue MiCA Discussions Without Bitcoin Mining Ban Proposal

- Use of Digital Euro as Form of Investment Can be Prevented - ECB Official
- Amid Looming Euro Zone Economic Downturn, ECB's Lagarde Worries About Crypto, DeFi


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