STRASBOURG, France—Members of the European Parliament are reportedly considering a new draft of anti-money laundering (AML) laws and laws designed to combat the financing of terrorism (CFT) laws that would cover a raft of digital asset transactions by European Union residents.
The sectors potentially put under the AML/CFT microscope include decentralized finance (DeFi) platforms, the decentralized autonomous organizations (DAOs) that govern DeFi operations, and entities operating Web3 companies, CoinGeek reported.
The new draft is being framed as “compromise amendments” to the broader plan to update the EU’s AML/CFT laws that have been in the works for over a year.
‘Squarely in Crosshairs’
“Non-fungible tokens were put squarely in the EU’s crosshairs in July, but the individuals behind DeFi/DAO operations are now sweating the realization that they, too, aren’t exempt from oversight,” CoinGeek stated.
The draft text warns DeFi “developers, owners or operators” that they need to properly “assess risks” before “launching or using a software or platform.” The text seeks to apply existing AML/CFT rules to DeFi transactions if they’re “controlled directly or indirectly, including through smart contracts or voting protocols, by natural and legal persons,” according to the CoinGeek report.
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