Crypto Transfers Restrictions in Europe
Recent reports suggest that crypto transfers in Europe are facing restrictions due to stringent know-your-customer (KYC) procedures and blocks. This is believed to be linked to the Travel Rule, causing concerns among users and industry professionals.
Issues with Coinbase
- Hasu, from Flashbots, reported that Coinbase is blocking transfers in Europe to recipients other than the user.
- Users must sign a message to prove ownership when sending crypto to a self-custodial wallet.
- Identification, including passport details, is required when receiving funds.
Challenges Faced by Users
- Sam Harper, from Argent, also experienced similar issues with signing messages from a self-custodial wallet.
- OKX Europe has implemented similar stringent steps like Coinbase.
- Europe is perceived as a challenging environment for crypto transactions by industry experts.
Travel Rule Implications
According to industry leaders like Armani Ferrante and Jordan Fish, the new compliance steps are attributed to the Travel Rule. This guideline mandates the sharing of information about wire transfers’ originator and beneficiary.
Compliance Challenges
- Blockchain developer Kris O’Shea had to verify the original sender when depositing USDC into a Revolut card.
- A major Portuguese bank, Banco of Investimentos Globais, recently announced the blocking of fiat transfers to crypto platforms citing compliance with European guidelines.
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