The provisional agreement includes measure to expand the list of obliged entities to new bodies. The new rules will cover "most of the crypto sector, forcing all cryptoasset service providers (CASPs) to conduct due diligence on their customers. This means that they will have to verify facts and information about their customers, as well as report suspicious activity."

According to the agreement, "CASPs will need to apply customer due diligence measures when carrying out transactions amounting to €1000 or more. It adds measures to mitigate risks in relation to transactions with self-hosted wallets."

The Council and Parliament also introduced specific enhanced due diligence measures for cross-border correspondent relationships for cryptoasset service providers.

The aim of the Directive is to "strengthen the existing legislative framework by enlarging the scope for registration and reporting obligations and overall administrative cooperation of tax administrations."

There will be a "mandatory automatic exchange" between tax authorities of information which will have to be provided by reporting cryptoasset service providers.

This directive covers a broad scope of cryptoassets, building on the definitions set out in MiCA. Also, those cryptoassets that have been issued in a decentralised manner, as well as stablecoins, including e-money tokens and certain non-fungible tokens (NFTs), are included in the scope.

MiCA will enter into force on 29 June 2023 and will apply from 30 December 2024. However, the regulation will apply to e-money tokens and asset-referenced tokens from 30 June 2024.

The new transfer of funds regulation will also enter into force on 29 June 2023 and apply from 30 December 2024. 

According to the press release, the new EU Directive will provide for:

• "Direct access to bank account information across the Union: Law enforcement authorities and Asset Recovery Offices will have direct access to bank account information across the Union, through the single access point interconnecting bank account registries. This will enable the authorities to identify the banks in which suspects hold their accounts. Data protection safeguards will ensure that only limited information on the identity of the bank account holder would be made available.
• A common format for transaction records: the Directive will establish a common format for banks and crypto companies to provide the information on transactions – i.e., transaction records – to law enforcement authorities. The specifics of the format will be defined in an implementing act. Access to this information will be granted in accordance with national rules and procedural safeguards."

For further information, see the Proposal for a Directive on the access of competent authorities to centralised bank account registries through the single access point; and the staff working document.

MiCA puts in place a comprehensive EU level legal framework for cryptoasset issuers and service providers including compliance with the anti-money laundering rules. The new rules cover issuers of utility tokens, asset referenced tokens and stablecoins. It also covers service providers such as trading venues and the wallets where cryptoassets are held. This regulatory framework aims to "protect investors, preserve financial stability, while allowing innovation and fostering the attractiveness of the cryptoasset sector."

The updated rules regarding transfers of funds extends the scope of the rules to transfers of cryptoassets. This ensures "financial transparency on exchanges in cryptoassets and provides the EU with a solid framework that complies with the most demanding international standards on the exchange of cryptoassets, ensuring that these are not used for criminal purposes." 

Under the new rules, cryptoasset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of the transfers of cryptoassets they operate, regardless of the amount of cryptoassets being transacted. This ensures the traceability of cryptoasset transfers in order to be able to better identify possible suspicious transactions and block them.

They had previously indicated that the proposed Regulations would be considered at a plenary session in February 2023. The Parliament and the Council reached political agreement on the proposed Regulations in June 2022, so consideration of the texts by the Parliament is the next step.

On 4 January 2023 the EBA published a letter from the European Commission (dated 21 December 2022) and accompanying provisional call for advice, requesting technical advice on certain delegated acts to be adopted under MiCA. The delegated acts relate to classification of asset-reference tokens and e-money tokens and related fees. The request for advice is provisional as MiCA has not yet entered into force.

The EBA is asked to provide the technical advice by 30 September 2023.

The Commission intends to adopt the delegated acts before the application of the relevant parts of MiCA.

Together with the proposal for a recast of the transfer of funds regulation, on which an agreement has already been reached with the European Parliament, these will form the new EU AML rulebook once adopted.

Among the measures announced, the Council said the new EU anti-money laundering and combating the financing of terrorism rules will be "extended to the entire crypto sector, obliging all cryptoasset service providers (CASPs) to conduct due diligence on their customers. This means that they will have to verify facts and information about their customers." 

The Council expects "CASPs to apply customer due diligence measures when carrying out transactions amounting to €1000 or more, and adds measures to mitigate risks in relation to transactions with self-hosted wallets. The Council also introduced specific enhanced due diligence measures for cross-border correspondent relationships for cryptoasset service providers."