European Banking Authority Adds Crypto Assets AML/CFT Compliance

Blockchain has threatened the way normal business do the transaction. Considering they put out the ledger open for anyone to view it becomes harder to hide scams and even more so when they are internal. And for which a lot of govt, business and the predators in the market are worried about.

So many of them are trying to find a loophole into the smart contracts, blockchain and the variety of the transaction issues through which they can interfere into the new crypto asset transfers and digital money movement.

This way they want to bring the compliance on the anti money laundering (AML) and the combating the finance terrorism (CFT) throug the compliances they wish to bring for the included EU nations in the unions. And hopefully these rules go out in the international scene too.

Let's talk about how the new compliance would be changing the scenario for the EU.

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Data act, a failsafe to kill the Smart Contract

We all know that smart contracts once executed they can run without the inteferece of the parties. And they can act like a good escrow and they can be pretty cool for the transfer of the value. In this case you can see that they can also bring variety of problems for the govt and the banks that wants to have control over the funds and data.

And so the EU parliament has passed the act that would allow them the control over the data act and also they can interfere in the smart contract offering and the existing running contracts on the blockchain which is something that could make sense long term against the consumers.

The Travel Rule Guidelines

There is a paper that is out from the EU and that paper has been taken as a list of responses that the EU banking authority is collecting for the variety of the AML and the CFT compliances can be issued and applied to the users. In that context you can see that this paper would make a lot sense to bring forth new compliances which would be applied on business and consumers.

Money laundering has been the biggest concern in the EU and the variety of international hubs of finances. And so they want to put up the guidelines that would make the business and the consumers clear on what is accepted and what is punishment under the new AML and the CFT guideliances that comes under the specific sections of the crypto asset rules.

CBDC, Decentralized Coins and Blockchain

Govt around the world are sold on the blockchain narrative and they are trying to connect each other through blockchain and then funds would be transfered that way and they don't need the stablecoins owned by the external companies in near future.

Instead they would be building the CBDC in house and then they are going to be adding the chain rules for the cross border narrative. This way the altcoins would be reducing in numbers and also they would not make much money as the CBDC would take the preference over cash. Which is what these banks and the govt are planning.

But decentralization world works mysteriously and with the AI and other variety of the things that are out there would be making it not so easy for the govt to work with. So let's see how their regulations try to control the consumers with regulations.

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European banking authority is in process of passing variety of alws and the acts that would be affecting the normal flow of the decentralization of the crypto and the blockchain world. Let's see where the new compliance laws would be affecting the crypto and blockchain world.

Posted Using InLeo Alpha