The new EU Regulation, referred to as the “Travel Rules,” provides for mandatory personal verification for European crypto investors – if the amount of replenishment of an exchange account or withdrawal of crypto assets from a personal crypto wallet exceeds 1000 euros (about $1000). In addition, the Know Your Customer (KYC) procedure will be mandatory when conducting any financial transactions using the new cryptocurrency wallet address.
To complete KYC procedures, clients of cryptocurrency platforms will need additional information, for example, uploading a screenshot, confirming a residential address, disclosing transaction details, etc.
Since the regulation requires crypto service providers to exchange information among themselves, transfers of digital assets between cryptocurrency platforms may become temporarily unavailable in early 2025.
The requirements of the Travel Rules, which oblige the verification of the owners of cryptocurrency wallets, arise from the provisions of the regulation on the regulation of markets in crypto-assets of the European Union (MiCA), which defines the procedure for carrying out transactions for crypto-asset service providers (CASPs) in accordance with the anti-money laundering and countering the financing of terrorism (AML) regime /CFT).
Source: Bits
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