UK-based web3 compliance system Astra Protocol has announced a new strategy to help compliance for crypto exchanges and wallets. Astra Protocol’s new strategy comes in response to the European Union’s Fifth Anti-Money Laundering Directive (AMLD5), which has presented a series of challenges for crypto businesses.

However, Astra Protocol’s compliance protocol was designed to ensure that mandatory AML and KYC checks are performed and verified before transactions are executed. Astra Protocol has taken a proactive approach to adapt to the currently evolving regulatory landscape. The company is ramping up its efforts to incorporate global and local regulatory developments into its compliance structure thus making sure that its clients remain compliant even in the face of new regulatory challenges.

According to the company press release, governmental bodies are trying to implement regulatory measures that curb illegal activities without hindering technological advancements. As they formulate and enforce these measures, Astra Protocol offers a globally patented technology that integrates with DeFi platforms, crypto exchanges, and wallets. The solution is able to ensure compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures stipulated in AMLD5.

In order to ensure that every transaction is compliant with regulatory requirements, the system embeds both AML and KYC measures. It also offers an extra layer of transparency and accountability, which allows stakeholders and regulators to verify the legitimacy of transactions. More information about the Fifth Anti-Money Laundering Directive On 19 April 2018, the European Parliament adopted the 5th Anti Money Laundering Directive.

The amendments stemmed from the European Commission’s 2016 Action Plan to tackle the use of the financial system for the funding of criminal activities, terrorist financing and the large scale obfuscation of funds. The new directive addresses virtual currency providers and custodian wallet providers, art traders (when the value of transactions or series of linked transactions amount to EUR 10,000 or more), as well as estate agents who act as intermediaries in the letting of property where the monthly rent is equivalent to EUR 10,000 or more. The directive also affects those who provide similar services to auditors, external accountants, and tax advisors as a principal business or professional activity.

The new directive also includes a section on customer due diligence. According to deloitte.com, identification and verification of customers must be based on documents, data, or information from a reliable and independent source. The proposed amendment now states that where available, this should also include electronic identification means that have been approved by national authorities.

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