EU Expands Anti-Money Laundering Rules to Crypto Service Providers

The European Commission has officially passed an authorized act to integrate Crypto-Asset Service Providers (CASPs) into the mandatory local contact mechanism. This regulatory expansion, reported on September 10, 2026, extends the Central Contact Point (CCP) framework to include digital asset exchanges and custodial services. The move is designed to bolster oversight and streamline communication between private crypto entities and national regulators within the European Union, ensuring that providers operating across borders maintain a physical or designated regulatory presence in each member state.

Integration into the Central Contact Point Framework

Previously, the CCP requirements were exclusively applied to electronic money institutions and traditional payment service providers. By broadening this scope, the European Commission aims to eliminate regulatory loopholes that allowed decentralized or cross-border entities to operate without a direct line of accountability to local authorities. Under the new rules, member state regulators now have the authority to require CASPs to designate a specific contact person within their territory.

This local contact point will serve as the primary intermediary for:

• Facilitating the exchange of information regarding suspicious transactions.
• Ensuring compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) protocols.
• Providing regulators with timely access to internal documentation during audits.
• Coordinating enforcement actions across different jurisdictions.

Impact on Compliance and Enforcement

The inclusion of crypto providers in the compliance network follows the broader implementation of the Markets in Crypto-Assets (MiCA) regulation. By establishing a fixed point of contact, the EU seeks to enhance the efficiency of financial intelligence units (FIUs) in tracking illicit flows across various blockchain networks. According to reports from AML Intelligence, this structural change is a response to the increasing complexity of virtual asset transfers which often bypass traditional banking checkpoints.

The expansion of the CCP framework ensures that crypto-asset service providers are held to the same rigorous transparency standards as traditional financial intermediaries, closing the gap in regional financial supervision.

The implementation of this act signifies a shift toward a more centralized oversight model for cryptocurrencies. For international exchanges operating within the Eurozone, this will necessitate a review of their local operational structures to ensure they meet the new statutory requirements for personnel placement.

In conclusion, the decision to include crypto-asset service providers in the mandatory local contact mechanism reflects the European Union's commitment to rigorous financial monitoring. By aligning CASPs with the regulatory standards of payment institutions, the Commission aims to create a more transparent and secure environment for digital asset trading. This development marks a significant step in the ongoing evolution of the EU’s AML/CFT framework, ensuring that innovation in the crypto sector does not come at the expense of legal accountability.