The European Banking Authority (EBA) announced that from December 30, all cryptocurrency exchanges authorized to operate in the EU, as well as their intermediaries, will be required to comply with the provisions of the so-called Travel Rules.

All participants in the digital asset turnover are required to provide reports on transfers of funds and crypto assets, as well as to conduct a check for compliance with the Know Your Customer (KYC) rules of all participants in cryptocurrency transactions.

According to the Travel Rules, all cryptocurrency service providers are required to collect and provide information about participants in transactions worth €1,000 (approximately $1,100) or more. The personal data of the sender and recipient must be collected. Service providers are required to store this information for five years.

According to the Travel Rules, virtual service providers who do not comply with the rule may be subject to fines of up to €5 million (approximately $5.4 million) and suspension of operations, including revocation of their license.

The requirement arises from the provisions of the Markets in Cryptocurrency and Financial Markets Regulation (MiCAR), which sets out the procedures for cryptocurrency service providers (CASPs) to carry out transactions under the anti-money laundering and counter-financing of terrorism (AML/CFT) regime.

The day before, Patrick Hansen, Director of Strategy and Policy for the EU countries at the American company Circle, and Dante Disparte, Chief Strategy Officer of Circle, said that in connection with the entry into force of the EU crypto asset market regulation rules (MiCA), organizations that cannot comply with the new requirements will likely cease their operations or lose a significant market share.