tl;dr
Reports from Europe indicate that crypto transfers are facing restrictions due to strict know-your-customer (KYC) procedures and blocks, potentially linked to the Travel Rule. Coinbase and OKX Europe are reportedly blocking transfers to recipients other than the user, and additional verification ste...
Crypto transfers in Europe are reportedly facing restrictions due to heavy know-your-customer (KYC) procedures and blocks, potentially linked to the Travel Rule. Coinbase and OKX Europe are said to be blocking transfers to recipients other than the user, and additional verification steps are required when sending crypto to self-custodial wallets. These compliance measures are attributed to the Travel Rule, a set of guidelines mandating financial institutions to share information about the originator and beneficiary of wire transfers. Furthermore, banks in Portugal have notified clients of blocked fiat transfers to crypto platforms, citing compliance with guidelines from the European Central Bank (ECB), the European Banking Authority (EBA), and the Bank of Portugal about risks associated with offering digital assets.
Hasu, the strategy lead at Flashbots, reported that Coinbase is imposing restrictions on transfers in Europe, requiring users to sign a message to prove ownership when sending crypto to a self-custodial wallet. In addition, identification is necessary for the sender if the user receives funds instead of sending them, even when transferring money to a Coinbase account from another source. Sam Harper, Argent’s crypto general council member, encountered similar issues and was unable to sign the required message from his self-custodial wallet. The analyst known as Ignas shared that OKX Europe requires the same steps as Coinbase. James Hunsaker, co-founder of Monad Labs, expressed concerns about the current environment for crypto in Europe, describing it as "scary."
Armani Ferrante, CEO of Backpack, attributed these new compliance measures to the Travel Rule, noting that they are becoming increasingly common and mandatory in certain jurisdictions. The Travel Rule, designed by the Financial Action Task Force (FATF), mandates that financial institutions share specific information about the originator and beneficiary of wire transfers and similar payments. Blockchain developer Kris O’Shea also reported the need to confirm the original sender when attempting to deposit USD Coin (USDC) into his Revolut card from a MetaMask wallet. Moreover, Banco of Investimentos Globais (BiG), one of Portugal’s largest banks, informed clients that fiat transfers to crypto platforms would be blocked, citing compliance with guidelines from the ECB, EBA, and the Bank of Portugal regarding the risks of offering digital assets.