On 4 December 2024, the European Banking Authority (EBA) issued a consultation paper containing draft Regulatory Technical Standards (RTS) specifying the criteria according to which crypto-asset service providers (CASPs) should appoint a central contact point to ensure compliance with local anti-money laundering and countering the financing of terrorism (AML/CFT) obligations of the host Member State.

Background

Article 45(10) of the EU Fourth Money Laundering Directive (4MLD) requires the EBA to develop RTS setting out the criteria for determining the circumstances in which the appointment of a central contact point is appropriate, and the functions of the central contact points. A first version of such draft RTS was issued in 2017 via Commission Delegated Regulation (EU) 2018/1108. The scope of Delegated Regulation (EU) 2018/1108 was limited to electronic money issuers (EMIs) and payment service providers (PSPs).

Regulation (EU) 2023/1113 on information accompanying transfers of funds and certain crypto-assets applies from 30 December 2024 and it amends 4MLD, inter alia by extending its scope to CASPs. As a result, Article 45(9) of 4MLD extends provisions that Member States may require EMIs and PSPs established on their territory in forms other than a branch, and whose head office is situated in another Member State, to appoint a central contact point in their territory to CASPs. This means that =Delegated Regulation (EU) 2018/1108 needs to be updated.

Proposals

Since the same considerations apply to EMIs and PSPs as they do to CASPs, and to keep disruption to a minimum the EBA proposes to:

  • Retain the structure and approach set out in Commission Delegated Regulation (EU) 2018/1108 and leave the provisions that apply to PSPs and EMIs unchanged.
  • Extend existing provisions to CASPs, while introducing new provisions for CASPs where this is necessary given their business model and operation.

Specifically, the EBA proposes to:

  • Include a definition of CASPs (reflecting the definition in Article 3 (2) of 4MLD) in Article 2.
  • Extend the existing definitions of ‘competent authority’ and ‘host Member State’ to include references to CASPs.
  • Extend other provisions in Articles 3 (1), (2), and (4), Article 4, Article 5 point (a) and (c), and Article 6 (1) and (2) to CAPSs.
  • Include in Article 3 paragraph (1) point (b), specific criteria for determining the circumstances in which the appointment of a central contact point should happen for CASPs. These criteria follow the same logic as that applied to EMIs and PSPs by focusing on the size and scale of the activities carried out by the entity in the host Member State but are adapted to fit the distinct nature of crypto-assets services, in line with Recital 27 of Regulation (EU) 2024/1624.

Next steps

The deadline for comments on the consultation paper is 4 February 2025.

The EBA will hold a virtual public hearing on the consultation paper on 16 January 2024 from 15:00 to 17:00 Paris time. The EBA invites interested stakeholders to register by 3 January 2023 at 16:00 CET.

The EBA will finalise the draft RTS once the consultation responses have been assessed. The final report on draft RTS is envisaged to be published in Q2, 2025.