The EU plans to tighten control over cryptocurrency transactions

The European Union is planning to vote on a bill that would oblige exchanges to report every cryptocurrency transaction to the authorities.

The new legislation is an update to the «travel rule» that has been in effect for several years. the «travel rule» stipulates that every financial transaction over € 1000 should be reported to financial authorities.

The adoption of the bill will strengthen control over the crypto industry: European exchanges will be obliged to report all cryptocurrency transactions, even those of € 5.

The authors of the bill insist on the importance of updating the «travel rule». They argue that small transactions are often used to finance terrorism or money laundering. This loophole currently allows digital assets to be used to conceal criminal activity, as illicit capital is moved anonymously without any geographical restrictions.