The EU has temporarily agreed to implement strict cryptocurrency due diligence measures to combat money laundering

ChainCatcher news, according to CoinDesk, EU policymakers reached a provisional agreement on parts of a comprehensive regulatory framework to combat money laundering on Wednesday, which will require all cryptocurrency companies to conduct due diligence on their customers. The Anti-Money Laundering Regulation (AMLR) is a broad effort to combat sanctions evasion and money laundering. It includes the creation of a single rulebook and the establishment of a regulatory authority that will also have jurisdiction over the cryptocurrency industry.

The European Parliament and the Council (which gathers finance ministers from the group's 27 member states) have agreed to take several measures, including requiring cryptocurrency companies to "conduct customer due diligence when conducting transactions of €1,000 ($1,090) or more." Wednesday's announcement stated that the agreement also adds some measures to reduce risks associated with transactions involving self-custody wallets.

Belgian Finance Minister Vincent Van Peteghem stated, "This agreement is an important part of the EU's new anti-money laundering system. It will improve the organization and coordination of national anti-money laundering and counter-terrorism financing systems. This will ensure that fraudsters, organized crime, and terrorists have no space to legitimize their profits through the financial system."