The EU Lawmakers released a draft that referred to money laundering through Metaverse, DeFi, and NFTs. An issuing compromise may subject those who govern decentralized autonomous organizations (DAOs) to extra requirements.
The European Lawmaker, Members of the European Parliament seems like they wanted to minimize money laundering by targeting massive crypto transactions along with the Metaverse, Decentralized Finance (DeFi), and Non-Fungible Tokens (NFTs). The information is sourced by the recent draft of EU Lawmakers.
However the European Parliament is currently discussing the pros and cons of European Union money-laundering laws proposed by the European Commission in 2021.
EU Lawmaker’ Money-Laundering Draft
Recent draft of EU lawmakers features a set of “compromise amendments” to the law which seek to find consensus among different political factions. It comprises a July idea from left-wing lawmakers to consider decentralized finance within the law’s scope.
The plan also added a list of “obliged entities” that currently covers banks, real estate agents and diamond traders who will lead wallet and other crypto service providers that are regulated under the EU’s MiCA.
As per the Draft, DeFi, and the DAO that regulate it “should also be subject to Union [anti-money laundering/counter-terrorist financing] rules where they are controlled directly or indirectly, including through smart contracts or voting protocols, by natural and legal persons.” Also, the “Developers, owners or operators should assess risks of money laundering and terrorist assessments before launching or using a software or platform.”
The draft of the anti-money laundering regulation that will complete a distinguished EU law on identifying the parties to crypto transactions – meets issuing areas of Web3 as a threat.
In addition, the draft further marked that the virtual world has become more popular by saying that “The metaverse offers new opportunities for criminals who can convert cash acquired through illegal activities into non-traceable currencies to purchase and sell virtual real estate, virtual lands and other high-demand goods.”
Source: https://www.thecoinrepublic.com/2022/10/01/eu-lawmaker-want-anti-money-laundering-law-to-apply-to-crypto/