Cryptocurrency firms should be mindful of customers using privacy coins or self-custodial wallets when monitoring for potential money laundering, the European Banking Authority (EBA) said in draft guidance published on Wednesday. The EBA proposes to amend its Guidance on "Money Laundering and Terrorist Financing" Risk Factors to set out the steps that Crypto Asset Service Providers (CASPs) should take to effectively identify and mitigate these risks. Additionally, the guideline says banks that accept cryptocurrency clients check their regulatory license and ownership. The guidance will be open for comment until August 31.