The new rules fall under the Anti-Money Laundering Regulation (AMLR). If approved, banks, other financial firms, and crypto-asset service providers (CASPs) will no longer be allowed to offer accounts that hide a user’s identity or handle privacy tokens that mask transactions.

The European Crypto Initiative (EUCI) explained in its AML Handbook that Article 79 of the AMLR clearly bans these services. It said, “Credit institutions, financial institutions, and crypto-asset service providers are prohibited from maintaining anonymous accounts”.

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Another major change is the creation of a new Anti-Money Laundering Authority (AMLA). Starting in 2027, AMLA will directly supervise larger CASPs operating in at least six EU countries. At first, AMLA will choose 40 companies, including at least one from each member state.

To qualify for direct supervision, firms must meet certain criteria. These include having at least 20,000 customers in a single country or handling yearly transactions worth more than 50 million euros (about 56 million US dollars).

The new rules will also require firms to carry out customer checks on any crypto transfers worth more than 1,000 euros (around 1,100 US dollars).

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A jury in the US District Court for the Northern District of California reached the verdict on March 12, convicting him of two felony charges related to misleading investors.

Andrade promoted AML Bitcoin as a cryptocurrency that would comply with the Anti-Money Laundering (AML) and Know Your Customer (KYC) rules. However, the token never launched.

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Between 2017 and 2018, investors contributed more than $2 million through an initial coin offering (ICO). Instead of using the funds for the project, Andrade spent the money on real estate and luxury vehicles.

Prosecutors argued that Andrade deceived investors with false claims, including one that the Panama Canal Authority was close to approving AML Bitcoin for use in ship transactions. The US Department of Justice pointed to this as one of several misleading statements used to encourage investment.

Andrade has remained out on a $75,000 bond since 2020 but faces serious penalties at his upcoming sentencing hearing on July 22. He could receive up to 20 years in prison for wire fraud and up to 10 years for money laundering.

Linda Nguyen, Special Agent in Charge at the IRS Criminal Investigation Oakland Field Office, criticized Andrade’s actions, saying:

Mr. Andrade’s outrageous lies lured and scammed individuals into investing their hard-earned money into a new cryptocurrency with fabricated features.

On February 26, US authorities took Aleksei Andriunin, the founder of Gotbit, a crypto “market maker” company, into custody. What happened? Read the full story.