is it still legal in the EU?
The post is it still legal in the EU? appeared on BitcoinEthereumNews.com. With the entry into force of the EU MiCAR Regulation and the recent stricter anti-money laundering rules, many are wondering if today the purchase and sale of cryptocurrencies face-to-face (that is, without going through exchanges or institutional intermediaries) is still a legal practice, especially if it involves a transfer from a cold wallet or an unhosted wallet. The so-called “travel rule”, introduced by Regulation (EU) 2023/1113 in the “AML package” (that is, the set of recent EU regulations and directives on Anti-Money Laundering), is to say the least punitive regarding the use of wallets whose owner is not identified in advance. Despite this, the answer is yes: the sale of cryptocurrencies face-to-face remains completely legitimate, provided that certain conditions are met and keeping in mind that it can present some significant risk aspects. Let’s try to understand better. What is the travel rule and how it operates In summary, the Regulation (EU) 2023/1113 requires that transfers of funds and crypto-assets be accompanied by a set of information about the identity of the entity transferring them, just as is the case for traditional bank transfers. These data, once declared, “travel” together with the crypto asset, allowing the reconstruction of the origin of those funds and verifying that they are not the result of money laundering activities or that they do not go to finance terrorist activities. Hence the expression “Travel Rule”. Now, it invests exclusively binding the crypto-asset service providers (CASP) who are prohibited from proceeding with transactions if they collect information on the senders and recipients of the transactions, which must then be ready to share with the authorities. This potentially makes anonymity more difficult, which has historically characterized some operations in criptovalute. Such rule, however, does not affect the legal validity of a contractual agreement between private parties who…
The post is it still legal in the EU? appeared on BitcoinEthereumNews.com.
With the entry into force of the EU MiCAR Regulation and the recent stricter anti-money laundering rules, many are wondering if today the purchase and sale of cryptocurrencies face-to-face (that is, without going through exchanges or institutional intermediaries) is still a legal practice, especially if it involves a transfer from a cold wallet or an unhosted wallet. The so-called “travel rule”, introduced by Regulation (EU) 2023/1113 in the “AML package” (that is, the set of recent EU regulations and directives on Anti-Money Laundering), is to say the least punitive regarding the use of wallets whose owner is not identified in advance. Despite this, the answer is yes: the sale of cryptocurrencies face-to-face remains completely legitimate, provided that certain conditions are met and keeping in mind that it can present some significant risk aspects. Let’s try to understand better. What is the travel rule and how it operates In summary, the Regulation (EU) 2023/1113 requires that transfers of funds and crypto-assets be accompanied by a set of information about the identity of the entity transferring them, just as is the case for traditional bank transfers. These data, once declared, “travel” together with the crypto asset, allowing the reconstruction of the origin of those funds and verifying that they are not the result of money laundering activities or that they do not go to finance terrorist activities. Hence the expression “Travel Rule”. Now, it invests exclusively binding the crypto-asset service providers (CASP) who are prohibited from proceeding with transactions if they collect information on the senders and recipients of the transactions, which must then be ready to share with the authorities. This potentially makes anonymity more difficult, which has historically characterized some operations in criptovalute. Such rule, however, does not affect the legal validity of a contractual agreement between private parties who…
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