Germany’s financial hub, Frankfurt, has been chosen to establish the headquarters of the European Union’s freshly inaugurated Anti-Money Laundering Authority (AMLA). This pivotal body is slated to commence its regulatory functions by mid-2025, with a mandate to supervise financial entities that engage in cross-border activities or are deemed high-risk, which now includes cryptocurrency firms.
New Regulatory Framework for Crypto Assets
AMLA is tasked with coordinating efforts against financial misconduct alongside financial intelligence units within the EU. Frankfurt’s selection for the agency’s base was made public in a recent EU Council announcement, highlighting the city’s pre-existing role as host to the European Central Bank. The choice of Frankfurt came after considering other candidate cities like Brussels, Vienna, and Paris. The AMLA’s governing structure will include a general assembly with members from all EU nations and an executive board led by a president.
The EU’s Crypto Asset Markets (MiCA) regulation was activated in June 2023, with further rules on stablecoins and service providers expected to follow by the end of 2024. These regulations are part of a significant move to bring clarity and security to the burgeoning crypto market.
EU Pioneers Legislation on Artificial Intelligence
Concurrently, the EU is forging legislation to regulate artificial intelligence (AI) usage. The European Parliament committees endorsed a draft AI Act, positioning the EU at the forefront of establishing legal standards for AI applications. This Act takes a protective stance for individual rights, copyright norms, and a prohibition on certain AI uses, preparing for its first parliamentary reading in April 2024.