Pissed about the EU’s new AML regulation? Good. Here’s what you can do: The new AML regulation will go to a final vote on April 24th in EU parliament. Until then, there’s still time to take action. Remember: it’s election year, so raising your concerns will count. The EU’s AML regulation is an adaption of existing AML policies to updated FATF recommendations. Neither the FATF recommendation, nor the AML provision itself seem to cite data for the following assumptions, which set the framework for the EU’s new regulation on crypto AML: (32k) “The anonymity associated with certain electronic money products exposes them to money laundering and terrorist financing risks.” (93) “The anonymity of crypto-assets exposes them to risks of misuse for criminal purposes.” FATF recommendations are informed by IMF, World Bank and FATF Regional reports (s.a. MONEYVAL in the EU). But MONEYVAL’s latest publication seems to just make more blatant assumptions about crypto AML, apart from a single report on cryptocurrency in Albania: „It is well known that money launderers have been abusing cryptocurrencies from their inception a decade ago, initially to transfer and conceal proceeds from drug trafficking.“ MONEYVAL’s publication further states that „MONEYVAL’s evaluations and follow-up processes are now closely looking into the regulatory framework for virtual assets in member States, and a 2022 typologies study will be dedicated solely to cryptocurrency money laundering trends,“ suggesting that no such study currently exists. The IMF’s latest report on Policies for Crypto Assets states that: „In traditional financial sectors, money laundering, terrorist financing, and various other forms of financial abuse may undermine domestic or balance of payments stability. […] such impacts have not been studied specifically in relation to crypto-assets“. The World Bank paper „Decrypting New Age International Capital Flows“ cites a single academic source claiming to have found that a quarter of bitcoin users are involved in illegal activity. The World Bank papers „Crypto-Asset Activity around the World“ and „What Does Digital Money mean for Emerging Markets and Developing Economies?“ refer to existing FATF recommendations, making much of the argumentation circular. What you can do: Contact your MEPs to demand scientific data which has led the Parliament and FATF to come to the above assumptions. Demand that the vote on the new AML regulation on April 24th is *halted* until the data has been assessed for the following reason: The Article 5 of the Maastricht Treaty, a founding document of the EU, also known as the Treaty on European Union (TEU), clearly states that: „Under the principle of proportionality, the content and form of Union action shall not exceed what is necessary to achieve the objectives of the Treaties.“ Tell MEPs that without the assessment of scientific data points, it cannot be concluded whether the EU’s new AML regulation is proportionate to its goal of fighting financial crime, or wether it will expose citizens to increased financial surveillance without due cause. Remember that not all MEPs are fans of financial privacy. Fortunately, there is another argument to make: increased reporting requirements for CASPs may stifle competition and innovation in the EU due to increased operational costs. You can find a full list of all MEPs incl. contact details here. If you can’t reach them via email, find them on social media. You can also reach out to the MEPs local parties. Many MEPs also have office hours where you can contact them via phone or in person. You should find these dates on their websites. europarl.europa.eu/meps/en/full-l… More on the regulation: finance.yahoo.com/news/europes-a… patrick-breyer.de/en/eu-cash-cap… x.com/zooko/status/1… Link to MONEYVAL Report: rm.coe.int/0900001680aad1… Link to IMF Report: fsb.org/wp-content/upl… Links to World Bank papers: documents1.worldbank.org/curated/en/950… documents1.worldbank.org/curated/en/738… documents1.worldbank.org/curated/en/099… Link to FATF recommendations: fatf-gafi.org/content/dam/fa… Link to AML regulation: europarl.europa.eu/meetdocs/2014_… Link to TEU: eur-lex.europa.eu/legal-content/…
@L0laL33tz wtf does “scientific data” mean in this context? Demanding something that’s impossible to produce is a stalling tactic and you’re demanding it of orgs that are able to change this kind of guidance pretty much unilaterally anyway.