EU Policymakers Propose Tighter Regulation of Crypto Transfers

European Union (EU) policymakers have proposed tightening the regulation of the transfer of crypto assets by requiring companies to collect details of senders and recipients.

• The European Commission, the EU's executive arm, proposed the rule Tuesday to help crack down on the flow of illicit money.
• Such a law would extend to crypto the Financial Action Task Force's "travel rule" that already applies to wire transfers.
• The aim of the legislation would be to "ensure full traceability of crypto-asset transfers" and "allow for prevention and detection of their possible use for money laundering and terrorism financing," the Commission said.
• The travel rule requires cryptoasset service providers to exchange identifying information such as customer's name, address and account details.
• Extending these requirements to crypto transfers would prohibit the use of anonymous crypto wallets.