The EU regulatory body establishes restrictive measure guidelines for cryptocurrency providers

On November 15, the European Banking Authority (EBA), a European regulatory body responsible for addressing weaknesses in the European banking sector, issued two sets of guidelines, including specific guidelines for Payment Service Providers (PSPs) and Crypto-Asset Service Providers (CASPs). On November 14, EBA released guidelines specifying what measures PSPs and CASPs must take when transferring funds or cryptocurrencies to comply with EU and national restrictive measures systems. According to EBA, these guidelines ensure the implementation of EU and national sanctions. The EBA believes that weaknesses in control, internal policies and procedures could pose legal and reputational risks to financial institutions (including PSPs and CASPs). In addition, weak links in these areas within financial institutions could also "weaken" the effectiveness of EU restrictive measures systems. The European Banking Authority emphasized that this could lead to rule evasion which would affect the stability of the EU's financial ecosystem. According to ECA, these guidelines will apply from December 30th ,2025.