According to PANews, the President of the Eurogroup and Minister of Finance of Ireland, Paschal Donohoe, announced at the European Summit on Combating Financial Crime 2025 in Dublin that the European Union intends to legislate on the requirements for cryptocurrency service providers to record the transaction details of both parties involved. This proposal aims to redefine the fund transfer mechanism by mandating cryptocurrency service providers to retain data on the sender and recipient of the funds. Donohoe emphasized the importance of expanding such financial regulations to effectively address transparency issues related to cryptocurrencies.
The EU had already adopted the Funds Transfer Regulation in May 2023, which requires complete traceability of cryptocurrency asset transfers. The new regulations will come into effect on July 1, 2027, prohibiting cryptocurrency companies from processing transactions involving anonymous wallets and privacy coins, and imposing IP blocks on non-compliant decentralized exchanges. Patrick Hansen, EU Policy Director at Circle, noted that the Anti-Money Laundering Regulation is not specifically targeted at cryptocurrency regulation but serves as a general framework applicable to all financial institutions. Meanwhile, Unity Wallet's COO, James Toledano, expressed concerns that the new rules could contradict the fundamental principles of DeFi. However, he acknowledged that due to the global nature of cryptocurrencies, users could still liquidate assets through alternative channels.
