EU Enforces Crypto Travel Rules, Mandates Compliance 6 Months
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The European Union (EU) has announced the imminent enforcement of Travel Rule guidelines for crypto-asset service providers (CASPs) by December 30, 2024. The European Union (EU) is ramping up its fight against money laundering and terrorist financing with the imminent enforcement of Travel Rule guidelines for crypto-asset service providers (CASPs). Announced by the European Banking Authority (EBA), these guidelines will become mandatory for all crypto exchanges operating within the EU by December 30, 2024. The #EBA has just published new guidelines on the information that should accompany transfers of funds and certain crypto assets. 🔗https://t.co/uNykQqOHwb pic.twitter.com/EwA6ZtYm8c — EU Banking Authority – EBA 🇪🇺 (@EBA_News) July 4, 2024 Crypto AML/CFT Rules For CASPs EU guidelines are a major step in integrating crypto activities into the EU’s existing Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) framework. Regulation (EU) 2023/1113, also known as the Travel Rule Guidelines, requires CASPs, as defined by the Markets in Crypto Assets (MiCA) regulation, to collect and report information on transfers of funds and digital assets. CASPs must gather user data for transactions, identify service-related purchases, and detect potentially suspicious transfers. Crypto service providers and intermediaries must establish clear policies for handling multi-intermediated transactions and cross-border transfers. The EBA acknowledges that achieving compliance may financially strain crypto exchanges and service providers, but it expects the long-term benefits to outweigh the initial costs. “These Guidelines are expected to contribute to making the fight against ML/TF more effective,” the EBA stated. Crypto exchanges already subject to the EU’s existing Anti-Money Laundering Directive (AMLD) or similar domestic AML/CFT regimes will continue to operate under those regulations. The Travel Rule Guidelines add a layer of compliance specifically targeting digital assets transactions. Cardano Meets MiCA Standards As European governments tighten regulations, the crypto industry is taking proactive steps towards compliance. The Cardano Foundation, working…
Filed under: News - @ July 6, 2024 6:14 am