Circle calls on the European Banking Authority to clarify the definition and regulatory scope of crypto asset service providers

ChainCatcher news, stablecoin issuer Circle responded to a proposal from the European Banking Authority (EBA) that expands the scope of its anti-money laundering and counter-terrorism financing guidelines to include crypto asset service providers. Circle pointed out that the proposal uses the term "service providers in the crypto asset ecosystem," and believes that the ambiguity of this phrase could inadvertently encompass providers of technology and ancillary services, such as blockchain analysis and network infrastructure.

Circle stated that the guidelines should not extend to providers that are not subject to MiCA regulation, "If certain EU companies are not within the scope of MiCA regulation, they should not be designated as higher risk. The fact that they are excluded from EU regulation indicates that they are not subject to EU financial, prudential, and anti-money laundering regulations, and therefore should not be bound by these EBA guidelines."