EU keeps focus on NFTs in latest anti-money laundering bill draft

MARKET_WATCH Regulation

Policymakers in the European Parliament are negotiating changes to the text of an EU anti-money laundering bill to highlight that NFT platforms or other companies providing services related to NFTs are covered by the regulation. This diverges from the scope of the European Union's standard-setting crypto rulebook, the Markets in Crypto-Assets regulation, which explicitly left them out. The MiCA framework, expected to pass a final vote next month, lays down the foundations of crypto regulation across the 27-nation bloc. While lawmakers intentionally exempted NFT platforms from its coverage, operators appear likely to be caught up in obligations under the proposed AML rules. 

 

 “NFT platforms are not covered in the current definition of crypto-assets service providers under the MiCA Regulation to the extent they do not provide services in crypto-assets that are fungible and non-unique,” reads a draft of the AML proposal obtained by The Block and confirmed by multiple sources familiar with the negotiation. “In order to close this gap and mitigate associated money laundering and terrorist financing risks, NFT platforms should therefore be included in the horizontal AML/CFT framework as a separate category of obliged entities.”  'Emerging vulnerability' NFTs were first included in the AML regulation in September, but the new language may further cement their place in the legislation. The Financial Action Task Force, an international agency tasked with monitoring money laundering, warned last month that NFT marketplaces are an "emerging vulnerability" in the fight against illicit cash flows.  The amendments will need to pass a vote in the two parliamentary committees overseeing negotiations on March 28, followed by a vote on the whole text. 

 

Then, the bill will move forward for a plenary vote before it enters inter-institutional negotiations.  Self-hosted wallets and addresses were recently under the microscope in the AML regulation, as Parliament cleared up the definitions and their implications. By clarifying those, the bill may have circumvented a full ban on non-custodial services in the EU.© 2023 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

 Source : [EU keeps focus on NFTs in latest anti-money laundering bill draft](www.theblock.co/post/216681/eu-nft-anti-money-laundering-bill?utm_source=feedly&utm_medium=rss) by Inbar Preiss - The Block by Inbar Preiss / March 03, 2023

rayn.finance logo

Automata FRANCE SAS

240 rue Evariste Galois,

06410 Biot,

Sophia Antipolis

Automata Pay

65-66 Warwick House 4th

Floor, Queen Street, London

England, EC4R 1EB

Automata Pay Europe Ltd

3rd Floor Ormond Building,

31-36 Ormond Quay Upper,

Dublin 7, D07 Ee37

Automata ICO Ltd

Italian Branch

Via Archimede, 161,

00197 Roma

Italy

The purchase of digital assets is subject to a high market risk and price volatility. Changes in value can be significant and occur rapidly and without warning. Past performance is not a reliable indicator of future performance. The value of an investment and returns can fluctuate both up and down, and you may not recover the amount you invested. RISK WARNING

Automata ICO Limited has a branch in Italy with its registered office at Via Archimede, 161, Roma, Italy, and registered in Italy under number 96550860587 with the Organismo Agenti e Mediatori (OAM) as a Virtual Asset Service Provider (VASP).

Automata France SAS is a company registered in France with the company number 902 498 617. Automata FRANCE SAS is registered with the french Financial Market Authority, l’Autorité des marchés financiers (“AMF”), as a provider of Virtual Asset Service Provider under number E2023-087.

Automata Pay Europe Limited is a partner of Modulr Finance B.V., a company registered in the Netherlands with company number 81852401, which is authorised and regulated by the Dutch Central Bank (DNB) as an Electronic Money Institution (Firm Reference Number: R182870) for the issuance of electronic money and payment services. Your account and related payment services are provided by Modulr Finance B.V. Your funds will be held in one or more segregated accounts and safeguarded in line with the Financial Supervision Act.