AML

Coinbase secures crypto asset service provider approval in Italy

Coinbase started providing its cryptocurrency services in Italy a while ago, offering Coinbase card services in the country as of June 2019.

The United States-based cryptocurrency exchange Coinbase continues aggressive European expansion by securing approval to offer crypto services in Italy.

Coinbase announced on July 18 that it has obtained the Crypto Asset Service Provider approval from the Italian Anti Money Laundering regulator, Organismo Agenti e Mediatori (OAM).

According to a post by Nana Murugesan, Coinbase’s vice president of international and business development, the approval will allow Coinbase to continue to offer crypto services and launch new products in Italy.

Coinbase started providing its cryptocurrency services in Italy quite a while ago. As previously reported, the exchange was offering Coinbase card services in Italy alongside countries like Spain and Germany as of June 2019.

Murugesan pointed out that Coinbase operates in nearly 40 European countries through dedicated hubs in the United Kingdom, Germany and Ireland.

“We are in the process of strengthening our presence across Europe and have registrations or license applications in progress in several major markets in compliance with local regulations,” Murugesan said in the announcement. He added that Coinbase’s goal is to grow its customer base by launching the Coinbase suite of retail, institutional and ecosystem services in each of those markets.

Coinbase is not the first crypto exchange to receive the OAM’s approval. In May 2022, the regulator granted approval to the Binance crypto exchange, allowing the firm to open its new headquarters in Milan.

Related: Coinbase denies reports of selling customer data to the US government

The approval comes in line with Coinbase’s reinforced expansion efforts in Europe. The exchange announced in late June that it was actively working to expand in Europe due to the ongoing cryptocurrency winter. Murugesan said that the company is planning to register in multiple European countries, including Italy, Spain, France and the Netherlands.

Coinbase’s new European expansion plans came shortly after the company slashed its staff by 18% in mid-June, citing the economic recession.

EU officials reach agreement on AML authority for supervising crypto firms

“We are putting an end to the wild west of unregulated crypto, closing major loopholes in the European anti-money laundering rules,” said European Parliament member Ernest Urtasun.

The European Council has reached an agreement to form an Anti-Money Laundering (AML) body that will have the authority to supervise certain crypto asset service providers, or CASPs.

In a Wednesday announcement, the council said it had agreed on a partial position of a proposal to launch a dedicated Anti-Money Laundering Authority, or AMLA. According to the regulatory body, the AML body will have the authority to supervise “high-risk and cross-border financial entities” including crypto firms — “if they are considered risky.”

European Parliament member Ondřej Kovařík said European Union officials had also reached a “provisional political agreement” on the government body’s Transfer of Funds Regulation. Not all the details of the revision are clear at the time of publication, but Cointelegraph reported that a March draft of the regulation could require crypto service providers to collect personal data related to transfers of any size made to and from unhosted wallets, as well as potentially verify their accuracy.

“We are putting an end to the wild west of unregulated crypto, closing major loopholes in the European anti-money laundering rules,” said European Parliament member Ernest Urtasun. “The rules won’t apply to P2P transfers where there is no obliged entity involved […] CASPs will be required to collect information and apply enhanced due diligence measures with respect to all transfers involving unhosted wallets, on a risk basis.”

Related: European crypto regulatory framework goes to three-way consideration without PoW ban

First proposed in July 2021, the AMLA should be operational in 2024 and “start the work of direct supervision slightly later,” according to the European Commission. The financial watchdog will be one of the first regulatory institutions with the authority to oversee money laundering across large regions of Europe, coordinating with respective countries’ financial intelligence units and working with local regulators.

Information, AML/CFT steps are key to fighting international digital crime, DOJ report says

The Justice Department report, mandated by the president’s executive order on digital asset development, recommends more efforts along the lines already being pursued.

The United States Department of Justice (DOJ) released a report on international law enforcement related to digital assets on Tuesday. It is the first of the approximately one dozen reports mandated in President Joe Biden’s March 9 executive order “Ensuring Responsible Development of Digital Assets.”

The report, titled “How To Strengthen International Law Enforcement Cooperation For Detecting, Investigating, And Prosecuting Criminal Activity Related To Digital Assets,” was written with the collaboration of the Departments of State, Treasury and Homeland Security, as well as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).

Countries have varying degrees of capacity to deal with criminal activity due to the unique law enforcement challenges associated with the nature of digital asset transactions, such as their anonymity and ability to cross borders instantaneously, the report said. It listed money laundering, ransomware activities, cybercrime, fraud, theft, terrorist financing and sanctions evasion among the criminal activities in question.

Weak Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) enforcement, limited legislative frameworks and lack of expertise in the face of an evolving threat landscape are also impediments to effective transnational crime-fighting efforts.

Information sharing is a key component in international enforcement efforts, but effective information sharing among U.S. agencies is needed for international efforts to succeed, the report noted, and a whole-of-government approach increases law enforcement effectiveness overall. The United States has entered into several agreements and organizations, such as the Financial Action Task Force (FATF) and the International Organization of Securities Commissions (IOSCO), to improve information sharing.

Related: Solving the ‘sunrise issue’ is the key to unlocking crypto mass adoption

The report’s recommendations are largely for more of the same cooperation and information sharing. It is particularly detailed in addressing the need for greater AML/CFT regulation. Criminal actors are able to take advantage of jurisdictional arbitrage, the report noted:

“Encourage partners to examine and weigh the reputational and national security risks and policy implications associated with allowing certain virtual assets businesses to operate within their borders.” 

Numerous U.S. agencies have international training and outreach efforts that contribute to international crime fighting.