EU temporarily requires crypto companies to conduct customer due diligence on transactions of €1,000 or more

European Union policymakers reached a tentative agreement on Wednesday on parts of a comprehensive regulatory package to combat money laundering that will see all cryptocurrency firms conduct due diligence on their customers. The European Parliament and Council (comprising the finance ministers of the EU's 27 member states) have agreed to measures including that cryptocurrency companies must adopt "customer due diligence measures" for transactions of 1,000 euros or more. The protocol also adds measures to reduce the risks of using self-hosted wallets for transfers. (CoinDesk) Previously, the European Banking Authority (EBA) extended its guidance on anti-money laundering and counter-terrorist financing risk factors to cryptoasset service providers (CASPs). The new guidance highlights the money laundering/terrorist financing risk factors and mitigation measures that crypto-asset service providers need to consider and represents an important step forward in the EU’s fight against financial crime. It is reported that the guidance will help crypto-asset service providers identify money laundering/terrorist financing risks, providing an exhaustive list of factors that may indicate that crypto-asset service providers face higher or lower risks due to their customers, products, delivery channels and geographical locations. Low money laundering/terrorist financing risk.