The European Commission, an EU executive has given a proposal tightening regulations on the transfer of crypto assets by requiring companies to collect details of senders and recipients.
The European Commission, an EU executive, made the proposal to support a crackdown on the flow of illegal money. A law would expand to crypto the Financial Action Task Force “travel rule” that already applies to wire transfer.
This proposal aims to stop further propagation of money laundering activity via traceability of crypto-assets transfers within the European Union. The service providers of crypto assets must include the customer’s name, address, date of birth and account number. It also includes where the account exists and where it is used to process the transactions. The beneficiary’s crypto-asset provider would also need to check if any of the required information is lacking.
Extending these requirements to crypto transfer would prohibit the use of anonymous crypto wallets.
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“The proposals have been designed to find the right balance between addressing these threats and complying with international standards while not creating an excessive regulatory burden on the industry,” the European Commission said.
EU state and European Parliament have the final say on the proposals, meaning it could take two years before proposals become law.
