Germany’s financial regulator, BaFin, is advocating for the inclusion of cryptocurrency firms within the scope of direct oversight by the future EU Anti-Money Laundering Authority (AMLA). The AMLA, scheduled to begin operations in 2028, is expected to directly supervise approximately 40 entities deemed to pose the highest risk of money laundering.
Birgit Rodolphe, BaFin’s Executive Director responsible for anti-money laundering, stated that, regardless of location, crypto exchanges should be among these 40 directly supervised institutions, alongside other payment service providers. She conveyed this information to the “Handelsblatt” newspaper.
The specific criteria for identifying the 40 high-risk financial institutions remain under discussion. Rodolphe acknowledged that “intense discussions” will be necessary to determine which firms represent the greatest risk. She emphasized the importance of broadening the focus beyond traditional banks to encompass the entire financial sector, with particular attention paid to rapidly growing institutions.
Rodolphe highlighted the increasing fragmentation within the payment landscape as a significant obstacle to combating money laundering and terrorist financing. She noted a shift from a system where banks primarily handled transactions amongst themselves to one involving a diverse range of payment service providers, with cryptocurrency exchanges contributing to this trend.