On November 24, 2023, the European Banking Authority (EBA) released a public consultation on new guidelines aimed at preventing the misuse of fund transfers and certain crypto-assets for money laundering and terrorist financing purposes.

In response, Adan formally submitted its comments on February 26, 2024, marking its active participation in the European regulatory debate on the framework for crypto-asset related activities.

These guidelines will replace the old Transfer of Funds Regulation (TFR) guidelines in light of the TFR’s update, which now incorporates the Financial Action Task Force’s (FATF) travel rule for crypto-assets into EU legislation. The underlying goal is to harmonize practices within the European Union by updating anti-money laundering and counter-terrorist financing (AML/CTF) measures to include provisions specific to the crypto-asset sector.

Adan largely approves of the EBA’s efforts to update the regulatory framework and highlights the need for realistic and measured approaches. However, our association draws attention to the importance of further clarifying certain aspects of the guidelines to ensure their effective application and to avoid hindering innovation in the crypto-asset field.

While Adan and its members recognize the need for appropriate and proportionate regulation, concerns about the proposed tight implementation timeline have been raised, calling for a more flexible approach that would allow for a smooth transition for all stakeholders involved in the crypto-asset sector.