10 Oct INATBA Supports Proposed Anti-Money Laundering Regulation (AMLR) by EU Parliament, Commission, and Council
We are glad to share that INATBA enthusiastically welcomes the proposed Anti-Money Laundering Regulation (AMLR) presented jointly by the European Parliament, Commission, and Council. With a membership comprising over 140 global entities enthusiast on blockchain development, INATBA stands poised to offer valuable insights into the draft AMLR requirements.
Key Themes in INATBA’s Response:
1. Avoiding Overcompliance: While expressing full support for the AMLR’s objectives, INATBA underscores the importance of avoiding overregulation that could inadvertently stifle innovation. It is essential to strike a balance between ensuring regulatory compliance and nurturing Europe’s potential as a thriving hub for blockchain-based applications.
2. Consistency with Existing Regulations: We emphasize the necessity of harmonizing the AMLR with other EU regulations, such as Transfer of Funds Regulations (TFR) and Markets in Crypto Assets (MiCA). Consistency is particularly critical in areas like Peer-to-Peer Transactions, Decentralized Finance Operations (DeFi), and Non-Fungible Tokens (NFTs).
3. NFTs and AMLR: We advocate for a risk-based approach when considering the inclusion of NFT platforms in the AMLR. Existing evidence suggests that NFTs have seen minimal usage for money laundering or terrorist financing. we recommend adding NFT platforms to AMLR obligations only following a thorough feasibility study confirming proportional risks.
4. Future Studies: INATBA suggests the need for further studies on the treatment of NFTs and NFT Service Providers, aligning with the objectives of MiCA. Clarity and legal certainty are essential for companies operating in this space.
5. Unhosted Wallets and Anonymous Accounts: INATBA proposes a clarification regarding the requirement to ban anonymous accounts. We suggest that this prohibition should apply solely to custodial anonymized accounts, allowing compliant Crypto Asset Service Providers (CASPs) to offer unhosted software tools and services.
6. Verification Requirements: We recommend the establishment of reasonable verification requirements for customer information. This includes promoting electronic evidence and encouraging the use of third-party mutualized AML service providers to help mitigate compliance costs.
INATBA commends the European Union’s proactive efforts in proposing the AMLR. We hope that its suggestions and insights will be thoughtfully considered in the ongoing refinement of the regulation before it becomes law.
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