The administration of the Kraken cryptocurrency exchange informed clients that the requirements of the European Union Regulation on the transparency of crypto transactions will come into force on December 30.
The new EU regulation, called the Travel Rules, requires mandatory personal verification for European crypto investors if the amount of deposits to an exchange account or withdrawal of crypto assets from a personal crypto wallet exceeds 1,000 euros (around $1,000). In addition, the Know Your Customer (KYC) procedure will be mandatory for any financial transactions using a new crypto wallet address.
To complete KYC procedures, cryptocurrency platform clients will be required to provide additional information, such as uploading a screenshot, confirming their residential address, disclosing transaction details, etc.
Since the regulation requires crypto service providers to exchange information with each other, transfers of digital assets between crypto exchanges may become temporarily unavailable in early 2025.
The Travel Rules requirements, which require verification of cryptocurrency wallet owners, follow from the provisions of the Markets in Cryptocurrency Regulation (MiCA), which defines the procedure for conducting transactions for cryptoasset service providers (CASPs) in accordance with the anti-money laundering and counter-terrorist financing (AML/CFT) regime.
