TFR Crypto Travel Rule

European Union

2023

AML/CFT

Payments

Overview

The Travel Rule for crypto assets, formally referred to as the Transfer of Funds Regulation (TFR), is a regulation adopted by the European Union in 2023 to extend the scope of existing anti-money laundering (AML) obligations to crypto-asset transfers. It aligns the crypto sector with the Financial Action Task Force (FATF)’s Recommendation 16, commonly known as the Travel Rule.

Under TFR, Virtual Asset Service Providers (VASPs) such as crypto exchanges and custodial wallet providers must collect, verify, and share specific originator and beneficiary information for every transfer of crypto assets valued at €1,000 or more. The rule applies to both intra-EU and cross-border crypto transfers and requires interoperability across service providers to ensure data compliance.

This regulation applies to crypto exchanges, custodial wallet providers, fintechs, payment processors, and any regulated institution handling virtual asset transfers in the EU.

Key Obligations

Collect and verify sender and recipient information for crypto transfers ≥ €1,000
Share originator and beneficiary data with the receiving VASP before or during the transfer
Monitor and flag suspicious transactions to relevant financial intelligence units (FIUs)

Apply enhanced due diligence (EDD) for high-risk transfers and jurisdictions
Retain transaction data for a minimum of five years

FAQ

Related Regulations

MiCA Crypto Assets Regulation

AML/CFT Law No. 20 of 2021

FATF 40 AML/CFT Recommendations

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