Germany’s financial regulator, BaFin, is advocating for the inclusion of cryptocurrency firms within the scope of direct oversight by the forthcoming European Union anti-money laundering authority (Amla). Amla, slated to begin operations in 2028, is expected to directly supervise approximately 40 entities identified as posing the highest risk for money laundering.
Birgit Rodolphe, BaFin’s Executive Director responsible for anti-money laundering, emphasized the need for a broad approach, stating that crypto exchanges, alongside other payment service providers, should be considered for direct Amla supervision, “regardless of their location”. She shared these views with the “Handelsblatt” newspaper in a recent interview.
While the precise criteria for selecting the 40 entities remain under discussion, Rodolphe anticipates considerable debate over identifying firms that present the greatest risk. She underscored the importance of extending the focus beyond traditional banks to encompass the entire financial sector, with specific attention paid to rapidly expanding institutions.
Rodolphe highlighted the increasing fragmentation within the payment landscape as a key challenge in combating money laundering and terrorist financing. The shift away from a concentrated banking system to a proliferation of diverse payment providers, including cryptocurrency exchanges, complicates efforts to track and prevent illicit financial flows. This dispersal, she noted, necessitates a more comprehensive supervisory framework.
