EU agrees on AML rules for crypto transactions

Today at TechREG, European Union negotiators reached agreement on the scope of anti-money laundering (AML) rules for cryptocurrency transactions. While most transactions will need to be recorded and reported to authorities upon request, some small transactions between non-hosted wallets may be exempt. Meanwhile, the Consumer Financial Protection Bureau (CFPB) continues its crusade against “junk fees” and warns debt collectors about some of their practices. Additionally, the Supreme Court’s decision in Roe v. Wade could bring additional scrutiny to companies that collect payment data, as that data could be used as evidence in criminal cases.

EU agrees strong AML controls for crypto with exemption for non-hosted wallets

EU policymakers agreed on new AML rules for crypto transactions on Wednesday, June 29. For transactions between digital wallet providers, like crypto exchanges, parties will need to verify the identity of customers for even the smallest crypto transfer. However, lawmakers decided to leave most small payments or transfers to non-hosted private wallets out of AML checks, a departure from the original proposal. Yet payments to non-hosted wallets over 1,000 euros (approximately $1,050) will still need to be reported, in accordance with similar provisions for wire transfers at traditional banks.

CFPB notifies fee collectors

The CFPB issued an advisory notice on Wednesday warning debt collectors that many of the “pay-to-pay” fees they often charge violate federal law. These fees, commonly described by debt collectors as a “convenience fee”, are imposed on consumers who wish to make a payment in a particular way, such as online or over the phone.

Payment data caught in the crosshairs of abortion

With the annulment of Roe v. Wade and the illegality of abortion in multiple states, payment data are now in the crosshairs if prosecutors decide to subpoena those records for evidence. Financial companies collect a lot of payment data from customers who digitally pay for most of their daily transactions, from food and fuel to clothing, healthcare and entertainment. Criminal investigators looking for evidence to prosecute abortion offenders can start with payment data, which may be easier to obtain than medical records.

DOJ Accuses NFT Insider Trading of Showing New Digital Direction, Report Says

While the first Department of Justice (DOJ) indictment relates to an insider trading scheme for non-fungible tokens (NFTs), it remains to be seen how the DOJ will work with the wider NFT community. According to Wilson Elser attorneys John Cahill, Jana Farmer and William Behr, the case may provide insight into the classification of NFTs as securities. The DOJ will also seek to increase its enforcement efforts.

Apple allows third-party payments in South Korea in response to new law

Apple is now allowing third-party payments in South Korea in response to a new law requiring major app stores to allow alternative payment methods. While Apple will still earn a commission, it will be 26% instead of the 30% it earned through direct payments. In its developer documentation, Apple said all sales will need to be reported monthly and commissions paid accordingly.

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