All participants in the circulation of digital assets are required to provide reporting on transfers of funds and crypto-assets, as well as check for compliance with the Know Your Customer (KYC) rules of all participants in cryptocurrency transactions.
Under the Travel Rules, all cryptocurrency service providers are required to collect and provide information about participants in transactions over €1,000 (approximately $1,100). Personal data of the sender and recipient are subject to collection. Service providers are required to ensure that this information is retained for five years.
According to the Travel Rules, virtual service providers that do not comply with the rule may be subject to fines of up to 5 million euros (approximately $5.4 million) and may have their activities suspended. Up to the revocation of the license.
The requirement arises from the provisions of the Markets in Crypto-Assets Regulation (MiCAR), which defines the procedure for carrying out transactions for crypto-asset service providers (CASPs) in accordance with the anti-money laundering and countering the financing of terrorism (AML/CFT) regime.
The day before, the director of strategy and policy in the European Union of the American company Circle, Patrick Hansen, and the chief strategic director of Circle, Dante Disparte, said that in connection with the entry into force of the rules for regulating the market of crypto-assets of the European Union (MiCA), organizations, that cannot meet the new requirements will likely go out of business or lose significant market share.
