The EU’s new AML framework: stricter rules for crypto-asset companies from 2025

15 janúar 2025

The European Union (EU) has reached a new milestone in the fight against money laundering and terrorist financing. From 2025, a comprehensive AML (Anti-Money Laundering) framework will come into force, significantly tightening the regulations for crypto-asset companies and other financial service providers. These new regulations are intended to substantially improve security and transparency in the crypto sector.

The Anti-Money Laundering Authority (AMLA): a key innovation

The centrepiece of the new AML framework is the establishment of the Anti-Money Laundering Authority (AMLA). This regulatory authority will supervise all crypto-asset service providers (CASPs) with cross-border branches and improve cooperation between national regulators. The aim is to reduce financial risks in the EU financial system and create uniform standards for the entire region.

Extended regulations for crypto companies

The new AML regulations go far beyond the previous rules. Initially, only providers of custodial wallets and crypto-to-fiat services were affected. From 2025, all crypto-asset service providers (CASPs) must fulfil strict requirements, including:

Legal entity identifier (LEI):

Companies must use LEIs to uniquely identify the sender and recipient when transferring money and assets.

data retention:

CASPs must collect and store transaction information and provide it to law enforcement authorities upon request.

enhanced compliance:

additional requirements apply to trading platforms, fund managers, crowdfunding platforms and investment migration operators.

These measures are intended to combat illegal financial activities such as money laundering and terrorist financing effectively.

The 6th Anti-Money Laundering Directive (6AMLD): Strengthening national responsibility

The 6th Anti-Money Laundering Directive (6AMLD) is part of the new AML framework. It obliges EU member states to carry out a national risk assessment every four years and appoint national regulatory authorities. These authorities are intended to ensure that local structures comply with EU-wide standards. In addition, a standardised analytical framework for financial intelligence units (FIUs) will be created to facilitate cross-border cooperation.

Why the new AML framework is necessary

The introduction of the new AML framework responds to the increasing challenges in the crypto sector. Studies show that 1% of EU GDP is linked to suspicious financial activity, often with cross-border elements. Spectacular crypto crimes in recent years have highlighted the need for stricter regulations.

The new rules are intended to curb illegal activities and strengthen confidence in digital financial systems. Expanding the scope of application and introducing modern identification methods, such as Legal Entity Identifiers, will create a more secure environment for crypto transactions.

Conclusion: More transparency and security for the crypto market

The EU’s new AML framework is a decisive step towards making the crypto sector more secure and transparent. The establishment of the AMLA, the extension of regulations to new market participants and the use of Legal Entity Identifiers (LEIs) marks a turning point in regulating digital financial systems.

This means that crypto companies must prepare for stricter compliance requirements. At the same time, consumers will benefit from a higher level of security and trust. With this framework, the EU is sending a clear signal: protecting against money laundering and strengthening the crypto market go hand in hand.

Visit lei.net to learn how Legal Entity Identifiers can help your organisation meet the new requirements.