The European Union is considered a gold mine for the development and growth of any new industry or business. However, the EU has continued to maintain a defensive and repellent stance towards the digital currency industry. Meanwhile, the EU recently made preparations for setting up a new regulatory agency to take care of illegal money channels.
The EU spokesperson claimed that thus far the bloc has been dealing with the detrimental effects of loose financial regulations around anti-money laundering policies and the flow of foreign stakeholders in the country. The agency will start working from 2024 and it is expected to become fully functional by 2026.
EU Lacks Proper AML Regulations
Banks like Deutsche AG and other traditional financial giants operating in EU nations have come under fire by the international financial community for leaving big gaps and loopholes in their AML regulatory framework. Chainalysis data postulates that around $14 billion illegal funds were injected into the EU banking system last year alone.
The EU nations that are pressing the bloc for going ahead with the strict regulatory framework are Germany, Austria, Italy, Luxembourg, Austria, and Spain. Luis Garicano, the leading regulator from the EU clarified that the new regulatory agency and AML amendments will be centered on the increasing flow of cryptocurrency trade in the region.
Brazil to Implement Crypto-Friendly Regulations
Economic Affairs Committee of Brazil has recently decided to ease up on the cryptocurrency industry and give some legal leverage to the digital traders in the region. According to the local media outlets, Brazilian legislators recently presented and approved a cryptocurrency bill that will help further the growth of the nascent industry in the Central American country.
The media also reported that the Brazilian authorities are planning to set the new crypto precedent according to international standards. However, while the Senate has passed the bill with a majority, the President of Brazil has yet to sign the bill and initiate it into the legal framework of the country. Meanwhile, the EU is planning to distance itself from cryptocurrency industrialization.