EU crypto AML authority to establish HQ in Frankfurt

David Attlee14 hours agoEU crypto AML authority to establish HQ in FrankfurtThe Anti-Money Laundering Authority will start its work by mid-2025.5151 Total views7 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksThe European Union’s new Anti-Money Laundering Authority (AMLA) will be headquartered in Frankfurt, the financial capital of Germany. The oversight body will start its work by mid-2025. 

The AMLA will have the authority to supervise “high-risk and cross-border financial entities” — including crypto firms — if they operate across borders or are considered high-risk. It will coordinate its oversight activities with financial intelligence units and regulators in other EU countries.

In a Feb. 22 press release from the Council of the EU and the European Council, Frankfurt was revealed as the city of choice for the new agency’s headquarters. The European Central Bank is also located in the city. The shortlist of alternative locations included Brussels, Dublin, Madrid, Paris, Rome, Riga, Vilnius and Vienna.

The AMLA’s general board will comprise representatives from regulators and financial intelligence units of all EU member states, while the governing body — the executive board — will include the chair and five independent full-time members.

Related: EU remains skeptical of crypto investments despite Bitcoin ETF fever — VanEck Europe CEO

The first comprehensive EU crypto framework, the Markets in Crypto-Assets (MiCA), came into force in June 2023, but the application of rules governing “asset-referenced tokens” and “e-money tokens,” which largely fall under the umbrella of stablecoins, is expected to take effect in June 2024. The rules for “crypto-asset service providers,” which include trading platforms, wallet providers and cryptocurrency exchanges and services, will take effect in December 2024.

Meanwhile, the EU has been busy crafting regulations on the use of artificial intelligence (AI). On Feb. 13, the European Parliament’s Internal Market and Civil Liberties Committees approved the preliminary agreement on the European AI Act, the world’s first AI-focused legislation.

The EU AI Act aims to establish safeguards, including copyright protection for creators, in response to generative AI models. It also prohibits AI applications that pose a threat to citizens’ rights, like biometric categorization and social scoring. The first parliamentary vote on the AI Act is scheduled for April 2024.

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