Crypto users in Europe are encountering increased transfer restrictions due to stringent KYC procedures, likely tied to the FATF’s Travel Rule. Exchanges like Coinbase and OKX now require additional verification, including proof of wallet ownership and sender identification, even for internal transfers.
Regulatory pressure extends beyond exchanges, with Portuguese bank BiG blocking fiat transfers to crypto platforms in compliance with ECB and EBA guidelines. These measures signal a growing crackdown on digital asset transactions across Europe, making crypto transfers more challenging for users.
According to reports from Flashbots strategy lead Hasu and Argent’s crypto general counsel Sam Harper. Hasu reported that Coinbase is blocking outbound transfers to recipients other than the users themselves. Furthermore, users transferring cryptocurrency to a self-custodial wallet are required to cryptographically sign a message proving wallet ownership.
Incoming transfers, even to a user’s own Coinbase account from an external source, necessitate sender identification, including passport verification. Hasu stated he did not attempt to circumvent these requirements but expressed concern about potential account freezes.
Harper corroborated Hasu’s experience, noting similar restrictions. He added that he could not sign the required message from his self-custodial wallet and subsequently abandoned the transaction.
Analyst Ignas reported similar requirements for OKX Europe. James Hunsaker, co-founder of Monad Labs, commented that the European regulatory environment is becoming increasingly challenging for cryptocurrency users.
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