Crypto Compliance: Adopting A Risk-Based Approach to Crypto Assets Exchange Within Crypto Currency Exchange Company Licensed In EU

Despite the fact that approved by Europarlament, 2018 Directive requested that Crypto currency exchange companies should apply anti money laundering norms for all operations with crypto assets, approaches to such companies still were no developed and described. These changes open crypto currency exchange companies for vulnerability in terms of exposure for money laundering and therefore money laundering risk assessment is critically necessary.

The same approach is also acceptable for financial institutions who deal with crypto assets. Within last year’s number of Initial Coin offers increased dramatically (Hsieh and Oppermann, 2021) , in result variety of the crypto assets trading within crypto currency exchange was increased too. All above mentioned increase necessity for the effective money laundering risk management. This paper aims to identify the approach how to access money laundering risk in crypto currency exchange companies.

Author analyzed EU legal norms, defined the principles of the AML risk assessment for Crypto assets exchange companies and offer risk Calculation matrix.