Article 40 Measures to mitigate risks in relation to transactions with a self-hosted address

Crypto-asset service providersmeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114 where performing one or more crypto-asset services; shall identify and assess the risk of money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and financing of terrorism associated with transfers of crypto-assetsmeans a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 except when falling under the categories listed in Article 2(4) of that Regulation; directed to or originating from a self-hosted addressmeans a self-hosted address as defined in Article 3, point (20), of Regulation (EU) 2023/1113;. To that end, crypto-asset service providersmeans a crypto-asset service provider as defined in Article 3(1), point (15), of Regulation (EU) 2023/1114 where performing one or more crypto-asset services; shall have in place internal policies, procedures and controls.

1. taking risk-based measures to identify, and verify the identity of, the originator or beneficiary of a transfer made from or to a self-hosted addressmeans a self-hosted address as defined in Article 3, point (20), of Regulation (EU) 2023/1113; or beneficial ownermeans any natural person who ultimately owns or controls a legal entity or an express trust or similar legal arrangement; of such originator or beneficiary, including through reliance on third parties;

2. requiring additional information on the origin and destination of the crypto-assetsmeans a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 except when falling under the categories listed in Article 2(4) of that Regulation;;

3. conducting enhanced ongoing monitoring of transactions with a self-hosted addressmeans a self-hosted address as defined in Article 3, point (20), of Regulation (EU) 2023/1113;;

4. any other measure to mitigate and manage the risks of money launderingmeans the conduct set out in Article 3, paragraphs 1 and 5, of Directive (EU) 2018/1673 including aiding and abetting, inciting and attempting to commit that conduct, whether the activities which generated the property to be laundered were carried out on the territory of a Member State or on that of a third country; knowledge, intent or purpose required as an element of that conduct may be inferred from objective factual circumstances; and financing of terrorism as well as the risk of non-implementation and evasion of targeted financial sanctionsmeans both asset freezing and prohibitions to make funds or other assets available, directly or indirectly, for the benefit of designated persons and entities pursuant to Council Decisions adopted on the basis of Article 29 TEU and Council Regulations adopted on the basis of Article 215 TFEU;.

1. the criteria and means for identification and verification of the identity of the originator or beneficiary of a transfer made from or to a self-hosted addressmeans a self-hosted address as defined in Article 3, point (20), of Regulation (EU) 2023/1113;, including through reliance on third parties, taking into account the latest technological developments;

2. criteria and means for the verification of whether or not the self-hosted addressmeans a self-hosted address as defined in Article 3, point (20), of Regulation (EU) 2023/1113; is owned or controlled by a customer.