The EU reached a deal on crypto regulations to stop illicit flows. A release by the organization says that the legislation is a part of the new anti-money laundering package and will be aligned with the Markets in Crypto-Assets (MiCA) conditions.
Related: MICA Proposal Moves Forward Without Bitcoin Limiting Condition
The union of 27 countries will regulate the crypto market following common rules. According to the law, transactions will be traced and identified to prevent crypto-related crimes and disallow suspicious activities. It extends the travel rule to cover crypto transfers. The rule defines that information on the asset’s source and its receiver travels with the transaction and is stored on both parties.
With the new rules, crypto-assets service providers (CASPs) should deliver the details to regulators in case there's an investigation. The release mentions personal data such as name and address required by the travel rule should not be sent if there’s no guarantee that privacy is upheld.
Lawmakers agreed to set up a public register for CASPs that are non-compliant and non-regulated. The operators would not be enabled to trade. Currently, this part is in the process of negotiations.