The framework encompasses all entities operating in the jurisdiction and extends to CASPs. Affected entities, such as cryptocurrency exchanges, will be required to flag and report suspicious activities to the government.
The goal is to protect investors and maintain financial stability. The new law also requires the creation of a new entity called the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA).
EU strategy and policy director at Circle, Patrick Hansen, provided more clarity on the matter on X. He mentioned that CASPSs will be required to adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
If CASPs abide by the above regulations, crypto users in the nation would be able to use these platforms “for buying goods & services with crypto,” Hansen wrote. He added that this would only apply if the transaction value exceeds EUR 1000 (approx $1072).
However, the circle executive clarified that this requirement was already in place via existing regulations. All wallet providers and cryptocurrency exchanges operating in the nation are required to comply with these regulations.