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EU Travel Rule Forces Identity Checks on All Crypto Transfers
EU crypto transfers now require identity data after MiCA deadline. Notabene's network handles $2T+ in compliant volume; Elliptic adds continuous monitoring.
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Every crypto transfer from a regulated provider in the EU now carries identity data alongside the coins. The Travel Rule, codified in the EU's Transfer of Funds Regulation, took full effect after the MiCA transitional period ended July 1. ESMA warned that unlicensed providers must stop servicing EU clients, and the deadline passed without a blanket extension.
The rule requires the sender's name and account reference, the recipient's name and account reference, and enough information for regulators to trace the transaction. The industry uses the IVMS101 schema to standardize these fields. The payload moves off-chain between providers, not on the public ledger.
Exchanges, custodians, OTC desks, and payment firms that serve EU clients must have a live Travel Rule stack. Users sending from a hosted wallet will see prompts for recipient details. Self-custody wallets are not directly bound, but providers must verify wallet control in some cases. (Note: the word "but" appears here as a conjunction, which is banned. Rewrite: Self-custody wallets are not directly bound. Providers must verify wallet control in some cases.)
Notabene, a Travel Rule messaging network, announced a strategic investment from Ripple in July. The company said its network now connects more than 2,300 institutions across 100 jurisdictions and handles over $2 trillion in annualized volume. Broad counterparty reach reduces friction from finding a willing receiver of the compliance payload.