Anti-money laundering rules for crypto: AMLD and AMLA.

Under EU anti-money laundering rules, crypto service providers are treated as obliged entities, just like banks. This means they must identify and verify customers (customer due diligence), monitor for unusual transactions and, where necessary, report to the national financial intelligence unit.

The depth of due diligence depends on risk: larger amounts, transactions with high-risk countries or unusual patterns call for enhanced scrutiny. That is why platforms sometimes ask for extra documentation or a statement on the source of funds.

Alongside national financial intelligence units and supervisors, the EU is setting up a new, directly applicable authority: AMLA. This authority will have direct powers over a selection of the largest and highest-risk financial institutions in the Union, and a coordinating role towards national supervisors for the rest of the sector.

For the crypto sector this means the largest, cross-border providers may in future fall under direct European AML supervision, in addition to national supervision by, for example, the AFM or FSMA. This is meant to stop differences in national enforcement being used to bypass the rules.

EU anti-money laundering rules also include general limits on large cash payments in the regular economy, as part of the fight against money laundering. Similarly for crypto, fully anonymous accounts and anonymous payment instruments are not allowed at licensed providers; customers must be identified before depositing, withdrawing or transferring significant amounts.

This directly affects the use of privacy-focused cryptocurrencies and anonymisation services: licensed European platforms typically offer these little or not at all, precisely because of traceability and due diligence requirements.

In practice you notice these rules mainly when opening an account, on larger deposits or withdrawals, and sometimes with unusual transaction patterns that require extra explanation. This is not a sign that you're suspected of anything; it's a standard part of the provider's legal obligations.

If you refuse to cooperate with identification or requested information, a provider can restrict or close your account, regardless of whether anything is actually wrong with the source of your funds.