Starting December 30, the European Banking Authority (EBA) will extend the EU Travel Rule to include crypto exchanges, requiring them to report information on fund and crypto asset transfers. This expansion is part of Regulation (EU) 2023/1113, aimed at enhancing Anti-Money Laundering (AML) measures.
Crypto asset service providers (CASPs) under the EU’s Markets in Crypto-Assets Regulation (MiCA) must comply with the EU’s AML/CFT framework. Payment service providers (PSPs) and intermediaries have two months to declare compliance. Providers must collect user information, identify service-related transactions, and detect linked transfers.
The EBA acknowledges potential financial stress for crypto exchanges but emphasizes the long-term benefits of a more effective fight against money laundering and terrorist financing. Notably, Binance joined the Global Travel Rule alliance in March to combat financial crimes. This regulatory shift marks a strategic step in global efforts to tighten crypto regulations and ensure financial security.
