After the European Commission has coordinated with other authorities, they plan to have the Financial Supervisory Group conduct potential regulation of illicit transactions by crypto companies.
Several EU member states, led by Germany, including the Netherlands, Spain, Austria, Italy, and Luxembourg, reportedly plan to bring crypto companies under the jurisdiction of an anti-money laundering-focused group. It is said to be the European Commission's anti-money laundering agency, which was first proposed in July 2021. The agency is expected to be operational in 2024 and be "fully operational" in 2026.
Putting cryptocurrency firms on the agenda of anti-money laundering regulators aims to provide clearer coverage of cryptocurrency transactions under EU financial services regulations, according to an EU diplomat. Luis Garicano, a member of the European Parliament, said: “Given that crypto-assets are one of the more prone areas for money laundering, the explicit inclusion of crypto-assets in the regulatory scope of the EU authorities is key.”
If an anti-money laundering watchdog is established, it will be one of the first regulators in Europe with the power to oversee the money laundering. A January report by Chainalysis showed that personal cryptocurrency laundering amounted to $8.6 billion in 2021, a 25 percent increase from 2020.
In the U.S., Deputy Attorney General Lisa Monaco announced on Feb. 17 that the FBI will create a “dedicated cryptocurrency research team” to track and seize illicitly used funds.
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