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EU Approves Restrictive Measures for Payment Service Providers and Crypto Providers

EU Approves Restrictive Measures for Payment Service Providers and Crypto Providers

CoinspaidmediaCoinspaidmedia2024/11/19 04:11
By:Coinspaidmedia

European financial regulators set common standards for compliance with restrictive measures for financial institutions in the EU, including specific guidance for payment service providers (PSP) and crypto-asset service providers (CASP). 

EU Approves Restrictive Measures for Payment Service Providers and Crypto Providers image 0

The European Banking Authority (EBA) published two sets of final Guidelines which, for the first time, establish common EU standards for the monitoring of compliance by European financial institutions with restrictive measures imposed at EU and member state level. 

The first set of guidelines is of a general nature and is addressed to all financial institutions. The second set of guidelines is aimed specifically at payment service providers and crypto-asset service providers. The document details how each type of entity should comply with restrictive measures when transferring funds or crypto-assets. 

In addition, the guidelines describe the interaction of restrictive measures with broader risk management practices of financial institutions. In addition to ensuring the effective implementation of restrictive measures, the document aims to minimize the operational and legal risks for financial institutions associated with these practices. 

The recommendations will take effect on December 30, 2025.

Major cryptocurrency exchanges in the summer of 2024 actively updated the policy of using stablecoins, preparing for the full entry into force of regulatory requirements for issuers of stablecoins, adopted under the European MiCA bill .

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