On May 9, PANews reported that Paschal Donohoe, the President of the Eurogroup and the Irish Minister for Finance, announced at the 2025 European Anti-Financial Crime Summit held in Dublin that the EU plans to legislate requiring cryptocurrency service providers to record the information of both parties involved in transactions. This proposal will redefine the mechanism for transferring funds, mandating that cryptocurrency service providers retain data on both the sender and receiver of funds. Donohoe emphasized, 'It is crucial to expand the scope of such financial regulations, as this will effectively address the issue of transparency in crypto assets.'
The EU passed a regulation on May 2023 (the Funds Transfer Regulation) requiring that cryptocurrency transfers must be fully traceable. The new rules will take effect on July 1, 2027, at which point it will be prohibited for crypto companies to process transactions involving anonymous wallets and privacy coins, and IP blocking will be implemented against non-compliant decentralized exchanges. Patrick Hansen, the EU Policy Director at Circle, pointed out that this (Anti-Money Laundering Regulation) is not specifically aimed at regulating cryptocurrencies, but rather applies to a general framework for all financial institutions. James Tolezano, COO of Unity Wallet, believes that the new regulations may contradict the core principles of DeFi, but given the global nature of cryptocurrencies, users can still cash out their assets through other channels.