Cardano

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The European Banking Authority (EBA) has <a href="https://x.com/EBA_News/status/1808866742900338785">announced</a> the extension of Travel Rule regulations to include crypto service providers. This shift aims to bring greater transparency and strengthen Anti-Money Laundering (AML) measures within the European Union. 
<h2 id="span-style-font-weight-400-new-regulations-for-crypto-exchanges-span">New Regulations for Crypto Exchanges</h2> 
Starting December 30, crypto exchanges operating within the region will have to comply with the Travel Rule guidelines. This regulation mandates Crypto Asset Service Providers (CASPs), as outlined in the <a href="https://thecoinrise.com/esma-pushes-crypto-regulation-moves-amid-mica-emergence/">EU’s Markets in Crypto-Assets Regulation (MiCA)</a>, to report detailed information on transfers of crypto assets. 
The goal is to integrate these entities into the EU’s Anti-Money Laundering/Countering the Financing of Terrorism (AML/CFT) regime. 
The <a href="https://www.eba.europa.eu/publications-and-media/press-releases/eba-issues-travel-rule-guidance-tackle-money-laundering-and-terrorist-financing-transfers-funds-and">new rules</a> will apply to a wide range of entities including payment service providers (PSPs), intermediary PSPs, CASPs, and intermediary CASPs. These entities will be granted a two-month buffer period to declare their adherence to the new requirements. EBA states: 
“The deadline for competent authorities to report whether they comply with the Guidelines will be two months after the publication of the translations.” 
<h3 id="span-style-font-weight-400-key-provisions-for-travel-rule-span">Key Provisions for Travel Rule</h3> 
The guidelines require crypto service providers to gather and report detailed information about their users’ transactions. This includes identifying whether transactions are related to the purchase of services and detecting transfers that may appear suspicious. 
These providers must also declare their policies regarding multi-intermediation and cross-border transfers. 
<h2 id="span-style-font-weight-400-long-term-benefits-span">Long-Term Benefits</h2> 
The EBA accepts that the EU Travel Rule guidelines will impose financial and operational burdens on crypto exchanges. However, the regulatory body believes in its long-term benefits. The EBA stated: 
“Overall, the benefits from these Guidelines are expected to outweigh potential costs, and these Guidelines are expected to contribute to making the fight against ML/TF more effective.” 
Crypto exchanges and service providers that are already subject to the EU’s Anti-Money Laundering Directive (AMLD) or a domestic AML/CFT regime will continue to comply with the applicable AML/CFT requirements. 
<h2 id="span-style-font-weight-400-proactive-measures-by-crypto-protocols-span">Proactive Measures by Crypto Protocols</h2> 
As European governments tighten their regulatory grip on crypto exchange activities, several crypto protocols are taking <a href="https://thecoinrise.com/kraken-scrutinizes-tether-amid-new-eu-regulations/">proactive steps</a> towards compliance. 
For instance, the Cardano Foundation partnered with the Crypto Carbon Ratings Institute to launcg sustainability indicators for the Cardano network. These indicators are designed to meet MiCA regulations in the EU, highlighting Cardano’s commitment to regulatory compliance. 
The post <a href="https://thecoinrise.com/eba-extends-travel-rule-guidelines-to-crypto-service-providers/">EBA Extends Travel Rule Guidelines to Crypto Service Providers</a> appeared first on <a href="https://thecoinrise.com">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

EBA Extends Travel Rule Guidelines to Crypto Service Providers

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