Currently, cryptocurrency users in Europe are facing a new wave of restrictions on their transactions. These changes are largely driven by regulatory efforts to enhance transparency and combat illicit activities in the digital currency space. The Travel Rule, stricter Know-Your-Customer (KYC) procedures, and the upcoming Markets in Crypto-Assets (MiCA) regulation are key factors shaping this evolving landscape.
Understanding the Travel Rule
The Travel Rule , developed by the Financial Action Task Force (FATF), is a critical component of these changes. It mandates that virtual asset service providers (VASPs) collect and share identifying information about both the sender and recipient of cryptocurrency transactions. This rule applies to transactions exceeding €1,000 and aims to prevent money laundering and terrorist financing by ensuring that all parties involved in a transaction are identifiable.
Impact of Stricter KYC Procedures
In addition to the Travel Rule, platforms are implementing more rigorous KYC measures. These procedures require users to verify their identities thoroughly, even when sending funds to their own accounts or self-custodial wallets. This heightened scrutiny is designed to ensure that users are who they claim to be, further reducing the risk of illicit activities.
Read More : https://onthenode.com/technology/navigating-the-shift-how-europes-crypto-regulations-are-reshaping-the-market
Understanding the Travel Rule
The Travel Rule , developed by the Financial Action Task Force (FATF), is a critical component of these changes. It mandates that virtual asset service providers (VASPs) collect and share identifying information about both the sender and recipient of cryptocurrency transactions. This rule applies to transactions exceeding €1,000 and aims to prevent money laundering and terrorist financing by ensuring that all parties involved in a transaction are identifiable.
Impact of Stricter KYC Procedures
In addition to the Travel Rule, platforms are implementing more rigorous KYC measures. These procedures require users to verify their identities thoroughly, even when sending funds to their own accounts or self-custodial wallets. This heightened scrutiny is designed to ensure that users are who they claim to be, further reducing the risk of illicit activities.
Read More : https://onthenode.com/technology/navigating-the-shift-how-europes-crypto-regulations-are-reshaping-the-market
| 61,000 mlx | |
| 64 | |
| 5 |
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