All participants in the turnover of digital assets are required to provide reports on money transfers and crypto assets, as well as to verify compliance with the "Know Your Customer" (KYC) rules of all participants in cryptocurrency transactions.
In accordance with Travel Rules, all cryptocurrency service providers are required to collect and provide information about participants in transactions for amounts starting from 1,000 euros (approximately $1,100). The personal data of the sender and recipient are subject to collection. Service providers are required to ensure that this information is stored for five years.
According to Travel Rules, virtual service providers who do not comply with the rule can be fined up to 5 million euros (approximately $ 5.4 million), as well as suspended operations. Up to and including revocation of the license.
The requirement follows from the provisions of the Regulation on the Regulation of Crypto Asset Markets (MiCAR), which defines the procedure for transactions for crypto asset service providers (CASP) in accordance with the anti-money laundering and counter-terrorism Financing regime (AML/CFT).
The day before, Patrick Hansen, Director of Strategy and policy in the European Union of the American company Circle, and Dante Disparte, Chief Strategic Officer of Circle, said that due to the beginning of the entry into force of the rules governing the European Union crypto assets market (MiCA), organizations that will not be able to meet the new requirements are likely to cease They will either lose their jobs or lose a significant market share.