EU Plans Legislation to Enhance Cryptocurrency Transaction Transparency

According to PANews, the Eurogroup President and Ireland's Finance Minister, Paschal Donohoe, announced at the 2025 European Anti-Financial Crime Summit in Dublin that the European Union intends to legislate requirements for cryptocurrency service providers to record transaction details of both parties involved. This proposal aims to redefine the mechanism of fund transfers, mandating crypto asset service providers to retain data on both the sender and receiver of funds. Donohoe emphasized the importance of expanding such financial regulations to effectively address transparency issues in crypto assets. The EU had already passed the Transfer of Funds Regulation in May 2023, which requires complete traceability of crypto asset transfers. The new regulations are set to take effect on July 1, 2027, prohibiting crypto companies from handling transactions involving anonymous wallets and privacy coins, and imposing IP blocks on non-compliant decentralized exchanges. Patrick Hansen, Circle's EU Policy Director, noted that the Anti-Money Laundering Regulation is not specifically targeted at cryptocurrency regulation but serves as a general framework applicable to all financial institutions. Meanwhile, Unity Wallet's COO, James Toledano, expressed concerns that the new rules might contradict the core principles of DeFi. However, he acknowledged that due to the global nature of cryptocurrencies, users could still liquidate assets through alternative channels.