EBA: From December, the European Union is changing the rules for cryptocurrency exchanges

Under the Travel Rules, all cryptocurrency service providers are required to collect and provide information about participants in transactions of €1,000 or more (approximately $1100). Personal data of the sender and the recipient is collected. Service providers are required to ensure that this information is stored for five years.

Under the Travel Rules, non-compliant virtual service providers can be fined up to €5 million (approximately $5.4 million) and have their operations suspended. Up to and including license revocation.

The requirement stems from the Cryptoasset Markets Regulation (MiCAR), which sets out the transaction procedures for cryptoasset service providers (CASPs) under the anti-money laundering and countering the financing of terrorism (AML/CFT) regime.

The day before, Circle's Director of EU Strategy and Policy Patrick Hansen and Circle's Chief Strategy Officer Dante Disparte said that as the EU's cryptoasset regulations (MiCA) come into force, organizations that fail to comply with the new requirements are likely to cease operations or lose significant market share.