Several reports suggest that crypto transfers in Europe are facing restrictions due to stringent know-your-customer (KYC) procedures and blocks, possibly related to the Travel Rule.
According to Hasu, the strategy lead at Flashbots, Coinbase is blocking transfers in Europe to recipients other than the user. Additionally, when sending crypto to a self-custodial wallet, the user must sign a message to prove ownership.
If the user receives funds instead of sending them, the sender must be identified, including passport identification. This applies even if the user sends money to his Coinbase account from another source.
Sam Harper, Argent’s crypto general council member, also reported the same issue. However, he said the message could not be signed from his self-custodial wallet, so he gave up on the transaction.
Ignas, an analyst, shared that OKX Europe requires the same steps as Coinbase. James Hunsaker, co-founder of Monad Labs, expressed concerns about the crypto landscape in Europe.
Travel Rule potentially behind
Armani Ferrante, CEO of Backpack, stated that these new compliance steps are a result of the Travel Rule. He added that this is becoming more common and mandatory in certain jurisdictions.
Jordan Fish, also known as Cobie, highlighted the new compliance requirements related to the Travel Rule.
The Travel Rule is a set of guidelines mandated by the Financial Action Task Force (FATF) that require financial institutions to share information about the originator and beneficiary of wire transfers and similar types of payments.
Kris O’Shea, a blockchain developer, reported that he had to confirm the original sender when trying to deposit USD Coin (USDC) into his Revolut card from a MetaMask wallet.
On Jan. 7, José Maria Macedo, co-founder of Delphi Labs, shared that Banco of Investimentos Globais (BiG), one of Portugal’s largest banks, notified clients that fiat transfers to crypto platforms would be blocked. The bank cited compliance with guidelines published by the European Central Bank (ECB), the European Banking Authority (EBA), and the Bank of Portugal regarding risks associated with offering digital assets.
