XRP news

Crypto.com freezes XRP deposit due to new law

The exchange applied early the MiCA law that will come into force on December 30 and regulates cryptocurrency transactions.

The travel rule comes within the entry into force of the MiCA Law.

Crypto.com froze a deposit of 12 XRP. Image: ChatGPT/Dall-E.

The law in question is Regulation (EU) 2023/1113, also called the Travel Rule.

This law aims to combat money laundering in Europe.

Edward Farina, a crypto trader, denounced how Crypto.com applied the travel rule to his XRP deposit on the exchange before the law came into force in the European Union. The travel rule, called Regulation (EU) 2023/1113, seeks to allow additional information about those involved in a transaction to “travel” with the transfer of funds in cryptocurrencies and digital money. It is part of the MiCA Act, a set of rules that will determine the operation of cryptocurrency exchanges from 2025.

Edward Farina, a cryptoasset trader

According to Farina, the travel rule is being enforced prematurely, which for him constitutes a violation of his rights. In addition, it would be “incorrectly applied” because he made the transaction from his country of origin, not while traveling. However, the application of the travel rule does not depend on the country where one is. It applies in the entire European Union and in other jurisdictions that have adopted the recommendations of the Financial Action Task Force (FATF).

Certain users do not show discomfort with the data interception measure, and assure that deposits are only a little slower than before. Others point out that the control of private information by States, centralized institutions and governments creates a vulnerability for individuals, and recommend self-custody.