The European Parliament Research Service is recommending to the E.U. regulators that they should expand the scope of both the definition of crypto and the list of crypto-related businesses subject to laws.

In a recent study, the European Parliament’s in-house think tank is suggesting that the E.U. should broaden the definition of cryptocurrency. The researchers are of the view that the 5th Anti-Money Laundering Directive (AMLD5) framework is now outdated when compared to higher international standards like that of the Financial Action Task Force (FATF).

The AMLD5 which was adopted by the E.U. in May 2018, enabled it to propose a stringent regulation framework for the crypto industry. The framework requires crypto exchanges and custodial service providers to register with regulators. They were also required to demonstrate compliance with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) rules.

One of the recommendations by the researchers was about the expansion of the AML/CFT frameworks regulatory scope. According to the researchers, since there has been a massive growth in the number of platform tokens, the regulator should think of including private tokens as a subcategory of crypto.

Furthermore, the researchers also proposed that crypto-related entities that are not covered by the current framework should be targeted for AML purposes. Some of which include, exchanges facilitating crypto-to-crypto transactions, financial institutions that participate in crypto offerings, and centralized trading platforms.

The researchers also recommended that crypto miners need to undergo further scrutiny. The report noted that, some coins that are emerging these days do not always require big energy-consuming server farms to mine. However, they claim these coins can be mined by running a few hardware rigs at home, which can be set up by anyone, including criminal actors.

Another interesting recommendation by the researchers is that coin developers and non-custodial wallet developers should not be subject to AML procedures. The researchers claim those entities are nearly providing the technological infrastructure.