Anti-money laundering regulation in crypto asset transfers

IN our repeated study of fintech regulations, I came to learn of steps taken by the European Union in regulating digital assets. One crucial aspect is the prevention of money laundering.

It is no secret that the rise of cryptocurrency has also increased its potential for misuse for money laundering and evading conventional anti-money laundering regulations. Unlike in dealing with traditional financial institutions, cryptocurrency exchange users do not have to identify themselves when transferring assets. Cryptocurrency transactions are often cryptographically secured and identifiable only through a user's exchange account or crypto wallet address.