The European Union is intensifying its oversight of cryptocurrency transactions by proposing new legislation that mandates crypto service providers to collect and retain identifying information on both parties involved in a transaction. Building on the 2023 Transfer of Funds Regulation, the new rules—set to take effect on July 1, 2027—aim to eliminate anonymity in crypto transactions, especially targeting anonymous wallets, privacy coins, and non-compliant decentralized exchanges (DEXs) through tools like IP blocking.
This move reflects the EU’s broader goal to bring crypto regulations in line with traditional financial compliance frameworks, such as **Anti-Money Laundering