TechFlow news, on July 5, according to Cointelegraph, the European Banking Authority (EBA) announced the extension of its Travel Rule guidelines to cover crypto service providers and their intermediary institutions. Starting December 30, cryptocurrency exchanges operating within the European Union (EU) will be subject to Regulation (EU) 2023/1113 (the Travel Rule guidelines), which mandates reporting information on transfers of funds and crypto assets.
Under MiCAR's definition, crypto-asset service providers (CASP) will fall under the EU’s anti-money laundering/countering the financing of terrorism (AML/CFT) regime. Once the regulation takes effect, payment service providers (PSP), intermediary PSPs, CASPs, and intermediary CASPs will have a two-month grace period to declare compliance with the new requirements. General obligations include collecting user information for fund or crypto asset transfers, determining whether transactions relate to purchased services, and identifying seemingly related transfers. Additionally, crypto service providers and intermediaries must declare their policies regarding multiple intermediaries and cross-border transfers.
The EBA acknowledges that complying with the EU Travel Rule guidelines may impose financial pressure on cryptocurrency exchanges and service providers, but in the long term, it will help combat money laundering and terrorist financing more effectively.
