The EBA issues criteria to determine when Crypto Assets Service Providers have to appoint a central contact point to help fight financial crime

The European Banking Authority (EBA) today published new draft Regulatory Technical Standards (RTS) that define when crypto-asset service providers (CASPs) have to appoint a central contact point. A central contact point can be an important tool in the fight against financial crime.

CASPs established in one EU Member State can provide services in another EU Member State. In some cases, where they have a local ‘establishment’, for example a crypto ATM, they must comply with local anti-money laundering and countering the financing of terrorism (AML/CFT) obligations as well as those that apply in the home Member State. In those situations, central contact points can help mitigate the money laundering and terrorist financing (ML/TF) risks associated with the cross-border provision of crypto asset services and facilitate adequate AML/CFT supervision and oversight.

The draft RTS set out:

• The conditions under which CASPs should appoint a central contact point; and
• The roles and responsibilities of that central contact point.

In line with the EBA’s legal mandate, the draft RTS do not define the form a central contact point should take, or where in the EU it should be based.

Legal basis, background

Article 45(10) of Directive (EU) 2015/849 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 regulatory standards was issued in 2017. This Commission Delegated Regulation (EU) 2018/1108 was published in the Official Journal of the EU in 2018. The scope was limited to Electronic Money Institutions (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. It amends Directive (EU) 2015/849, inter alia by extending its scope to crypto-asset service providers. Consequently, Article 45(9) of this Directive 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 CCP point in their territory to CASPs. This means that the EBA has to update the Commission Delegated Regulation (EU) 2018/1108.