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TEXXR

Chronicles

The story behind the story

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EU lawmakers provisionally agree on anti-laundering rules for crypto, requiring verified customer identities for transfers between regulated digital wallets

The European Parliament and Council reached a provisional agreement to force crypto providers to provide identifying information …

Bloomberg

Context & Ripple Effects

The agreement follows the Commission's proposal to require sender and recipient details for crypto transfers and Parliament's vote to end anonymous crypto transactions, including self-hosted-wallet transfers. It advances an EU policy arc that began with 2017 restrictions on anonymous prepaid-card activity on crypto platforms.

By aligning Parliament and Council around identity checks for transfers between regulated wallets, the measure moves crypto-transfer compliance from a proposed or chamber-specific position toward a shared legislative framework.

First-order effects

  • Regulated crypto providers will need to verify and transmit customer identity information when handling transfers between regulated digital wallets under the provisional agreement.
  • The European Parliament and Council have narrowed their differences on crypto-transfer anti-laundering controls, creating a common compliance direction for providers operating under EU rules.

Second-order effects

  • Wallet and exchange operators will need transfer workflows that reliably associate counterparties with verified customer records, making compliance operations a more central part of service design.
  • Providers whose products emphasize anonymous transfers face a weaker fit with the EU market as identity checks become the expected condition for regulated-wallet transfers.

Third-order effects

  • If this approach is carried into final rules, EU crypto infrastructure will increasingly be governed as a traceable payments system rather than a separate anonymous-transfer channel.
  • The policy path points toward programmable settlement being constrained by financial-crime controls, with regulated intermediaries becoming the enforcement layer.

The trend: EU crypto policy is steadily embedding identity verification and transaction traceability into regulated digital-asset transfers.

Discussion

  • @okovarikmep @okovarikmep on x
    EU institutions have found a provisional political agreement on the Transfer of Funds Regulation. I believe it strikes the right balance in mitigating risks for fighting money laundering in the crypto sector without preventing innovation and overburdening businesses. https://twit…
  • @ernesturtasun Ernest Urtasun on x
    1/Deal! After months of negotiations with the Council, we agreed the most ambitious travel rule for transfers of crypto-assets in the world. We are putting an end to the wild west of unregulated crypto, closing major loopholes in the European anti-money laundering rules. Thread👇 …
  • @gladstein Alex Gladstein on x
    Imagine having this much zeal about expanding a surveillance regime on the people you are supposed to be representing in a democracy https://twitter.com/...
  • @mhiesboeck Dr Martin Hiesboeck on x
    I guess I have to go back to Brussels again. 🙄 https://twitter.com/...
  • @ernesturtasun Ernest Urtasun on x
    2/12 All crypto-asset service provider become obliged entities under AMLD. Crypto-ATMs are captured by the rules. The travel rule for crypto will apply to all transactions from/to CASPs from the first euro.
  • @samrusani Sami Rusani on x
    Let's see where this goes. Regulation is needed, but not at the cost of stifling innovation. Allowing unhosted digital wallets is a must, it's absolutely ridiculous to restrict that. It would be like restricting cash transactions. https://www.coindesk.com/...
  • @theguyswann Guy Swann on x
    Europe is truly digging it's own grave, and planting their own flowers around it. The West is dying & these people are utterly blind to it. They pat themselves on the back & drink champagne as the Titanic sinks. Not Your Keys, Not Your Coins #Bitcoin https://twitter.com/...
  • @mhiesboeck Dr Martin Hiesboeck on x
    Good luck enforcing that. Like ever. https://twitter.com/...
  • @paultang Paul Tang on x
    Tonight's deal on the “transfer of funds regulation” explained 👇 Thanks for the excellent cooperation @ernesturtasun and @Assita_Kanko! https://twitter.com/...