What's in this article
The European Union is looking to allow its new anti-laundering watchdog to monitor the crypto market. The organization which is due for launch in 2024 and will be charged with reducing financial crimes like terrorist financing and money laundering.
One of the leading EU lawmakers said that crypto is “one of the fields more prone to money laundering activities.”
With the launch of the crypto watchdog, the European Union is taking action to increase its crypto oversight efforts by giving its new watchdog more access and power to monitor the industry.
EU Looking to Bolster Crypto Oversight
The European Union is taking action to develop its plans to act as a regulator on crypto and bolster its efforts to prevent money laundering and terrorist financing.
Bloomberg reported on Tuesday that the organization consisting of 27 European countries is hoping to include cryptocurrency firms within the radar of its new anti-money laundering watchdog over concerns digital assets are linked with illegal activities.
However, anti-money laundering efforts are currently being undertaken by several authorities across various countries in the European Union, which brings the problem of proper coordination.
Luis Garicano, one of the leading lawmakers for the proposal, expressed the benefits of the new watchdog monitoring digital assets as Crypto is “one of the fields more prone to money laundering activities.”
The growth and adoption of the crypto market over the last year have caused regulators worldwide to turn their attention to the space. Most regulators argue that crypto is a haven for criminals as a recent Chainalys report showed that crypto-related crimes peaked at an all-time high of $14 billion in 2021, but this represents a lower per capita portion of the entire crypto usage as crypto adoption also hit new highs.