The European Union’s banking watchdog on Tuesday released guidance to crypto firms in order to comply with the anti-money-laundering and terrorist financing requirements.

In a press release, the European Banking Authority said that by extending its scope to include crypto, it “harmonizes” the approach that crypto asset services providers (CASP) in the EU should take to combat financial crimes.

The risk of this occurring can be increased by the speed at which crypto-assets are transferred or the fact that some products have features to hide the identity of the user. CASPs should be aware of these risks, and take measures to mitigate them.

Last year, the EU finalized legislation regarding the transfer of digital assets. This was part of its landmark Markets in Crypto Assets regulatory package. Since then, the EBA published Guidelines for risk-based CASP supervision and is currently consulting on proposed Guidelines that will prevent abuse of crypto transfers in line with the recommendations of the global watchdog Financial Action Task Force. The EBA is also consulting on guidelines regarding internal policies and controls that CASPs need to have.

The EBA stated that “given the interdependence in the financial sector, these new guidelines also include guidance for other credit and financial institution who have CASPs or crypto assets as customers.”

The new guidelines will be published in the official EU languages and the competent authorities must report within two months whether or not they have complied with them. Guidelines will be in effect from around Dec. 30, when MiCA fully takes effect.