According to a latest bulletin, crypto licenses stand to lose their licenses if it comes to light that they have breached EU regulations. This revocation has to do with breaching of anti-money laundering laws. This recommendation was made by lawmakers as they are in the final stages of landmark legislation called the Markets in Crypto Assets Regulation (MiCA). This legislation will cover crypto companies in 27 EU countries.
Regulatory authorities who authorize and register crypto exchanges as well as providers of wallets will be empowered to withdraw the same if companies breach anti-money laundering rules. MiCA also introduces requirements for issuers of crypto and stable coins to have requisite capital reserves and be monitored by a regulatory body from any country.
Another wrinkle to be addressed by the legislation relates to concerns whether stronger AML controls should be introduced or leave it alone. Wider review of the introduction of dirty money into markets will draw new rules later. Major crypto companies like Binance have registered in Italy and France. Binance is the largest exchange dealing in crypto and its trading volumes are the highest.
EU countries have started to toughen up anti-money laundering laws after a series of scandals broke out. These scandals have affected regular lending banks like Malta’s Pilatus and Danske Bank. This news does not bode well for the crypto industry, even the big players. It is a watch and watch moment for most crypto companies and could impact day to day operations under strict supervision.