As the crypto industry continues to grow and evolve, regulatory compliance has become an increasingly important issue for companies operating in this space. With new anti-money laundering (AML) regulations being proposed and implemented in various jurisdictions, crypto service companies are facing increasing pressure to implement effective AML compliance programs.

One of the key regulatory changes affecting the crypto industry is the entry into force of the Markets in Crypto-Assets Regulation (MiCA) in the European Union. This regulation, along with others in the pipeline, aims to increase oversight and control of crypto assets to prevent money laundering and terrorist financing. As a result, crypto service companies will need to develop and implement adequate practices to meet these new requirements.

The crypto industry is unique in that it is characterized by a high degree of cross-border activity, with companies often serving customers in multiple jurisdictions. This makes it particularly important for crypto service companies to be aware of and comply with regulations in all of the jurisdictions where they operate.

The adoption of the so-called “travel rule” and the application of the 2021 Financial Action Task Force (FATF) recommendations are becoming increasingly common requirements in most legal systems. This guide from Comply Advantage is a useful tool for crypto companies looking to understand the fundamentals of developing an AML risk control plan. It provides a high-level overview of some of the most important regulations in key jurisdictions such as the United States, European Union, United Kingdom, Japan, and more.

The crypto sector is an industry that is constantly innovating, with new technologies and use cases emerging all the time. This presents unique challenges for crypto service companies when it comes to managing AML risks. It is important for regulators to be mindful of these challenges and not impose impossible or unfeasible compliance requirements on crypto companies.

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