EU Expands Travel Rule Compliance to Crypto Service Providers

IconCryptoNewsTerminal Staff05 Jul, 2024

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EU Expands Travel Rule Compliance to Crypto Service Providers

The European Banking Authority (EBA) is extending the Travel Rule to local crypto service providers, effective December 30, 2023. The Travel Rule, a set of recommendations by the Financial Action Task Force (FATF), requires crypto firms to collect and verify user information during crypto transfers. Under the new guidelines, entities subject to the EU's Markets in Crypto Assets (MiCA) regulatory framework must comply with EU Anti-Money Laundering and Counter-Terrorist Financing rules. A two-month grace period will follow the enforcement date. This move aligns with the EBA's ongoing efforts to combat money laundering and terrorist financing risks associated with cryptocurrencies. Crypto service providers will now be responsible for collecting and sharing user data, enhancing transparency and accountability in the crypto sector. By implementing the Travel Rule, the EU aims to strengthen its AML/CTF framework, safeguarding the integrity of the crypto market and protecting consumers from illicit activities.

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