In Europe, crypto service provider firms would now have to furnish information of transactions in their platforms, and adhere to the travel rules, which is a step ahead in crypto regulation.
Europe has always been a step ahead in the subject of crypto regulation. Last year, it drafted and passed the Markets in Crypto-Assets (MiCA) regulation, which was hailed as a turning point for crypto. Several nations have taken the cue from the EU to create their own crypto regulatory rules. Meanwhile, the European Banking Authority (EBA) has released another set of travel rules for crypto service provider firms in the region.
The European Banking Authority has launched these new rules to combat instances of money laundering in the crypto sector. Even countries like the UK had launched similar initiatives in 2023. Moreover, the new set of crypto regulatory rules would make the sector transparent for users.
In a press release, the EBA stated, “The European Banking Authority (EBA) issued today new Guidelines on the so-called ‘travel rule’, i.e. the information that should accompany transfers of funds and certain crypto assets. This rule will help tackle the abuse of such transfers for money laundering and terrorist financing purposes.”
The press release then goes on to explain the background and reasons for their action. It also explains the legal basis of the travel rules for the crypto firms. The European Union also partially enforced the MiCA regulation just a few days back in June 2024. At the same time, it has also released new stablecoin rules for crypto firms.
With transparent and progressive crypto regulation, Europe has attracted new private crypto players into its market. For instance, recently, PayPal and another crypto payments firm expanded their crypto solutions to the European market. A central bank digital currency project is also underway in the EU.
Check out Millionero’s blog for more insights into crypto!