EU Policymakers Propose Tighter Regulation of Crypto Transfers

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.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jamie Crawley

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.