European Union (EU) policymakers have proposed tightening regulations on the transfer of crypto assets by requiring companies to collect details of senders and recipients.
- The European Commission, the EU's executive arm, made the proposal 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 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.
UPDATE (July 20, 15:31 UTC): Adds quote from commission, details of travel rule requirements.