The European Banking Authority (EBA) has announced an expansion of the Travel Rules for crypto services as part of strengthening anti-money laundering measures. From December 30, crypto exchanges in the EU will be subject to Regulation (EU) 2023/1113, which requires reporting information on transfers of funds and crypto assets. 😮

Crypto Asset Service Providers (CASPs) will be subject to the EU Anti-Money Laundering/Anti-Money Laundering/Terrorism Financing (AML/CFT) regime.

Once the regulation comes into force, PSPs, CASPs and their intermediaries will have a two-month period to comply with the new requirements.

Some common provisions include collecting user information to transfer funds or crypto assets, determining whether the transaction involves a purchase of services, and detecting transfers that appear to be related.

The EBA recognizes that compliance with the Travel Regulations will result in financial strain for crypto exchanges and service providers, but expects overall benefits in the long term.

Crypto exchanges and service providers that are currently subject to the EU Anti-Money Laundering Directive (AMLD) or domestic AML/CFT regime "will continue to be subject to applicable AML/CFT requirements."