European Union (EU) policymakers have proposed tightening regulations on the transfer of crypto assets by requiring companies to collect details of senders and recipients.

  • The European Commission, the EU's executive arm, made the proposal Tuesday to help crack down on the flow of illicit money.
  • Such a law would extend to crypto the Financial Action Task Force's "travel rule" that already applies to wire transfers.
  • The aim of the legislation would be to "ensure full traceability of crypto-asset transfers" and "allow for prevention and detection of their possible use for money laundering and terrorism financing," the Commission said.
  • The travel rule requires service providers to exchange identifying information such as customer's name, address and account details.
  • Extending these requirements to crypto transfers would prohibit the use of anonymous crypto wallets.

UPDATE (July 20, 15:31 UTC): Adds quote from commission, details of travel rule requirements.

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