Autorité des Marchés Financiers (AMF) Strengthen Crypto Regulations with EBA Travel Rule Guidelines

The European Banking Authority (EBA) published guidelines that are written in Regulation (EU) 2023/1113. These guidelines explain how entities and individuals should share information about crypto-asset transfers as EU regulation ‘TFR 2’ requires.

This move will align France’s financial supervision with the European Banking Authority’s (EBA) guidelines.

TFR 2 consists of rules and regulations for crypto-asset service providers (CASPs) in the EU and, is a revised version of EU Regulation 2015/847 (“TFR”) specifically published to strengthen the country’s efforts against illegal activities.

Essential improvements in TFR 2 are to expand TFR obligations and to align crypto-asset service providers (CASPs) with European AML/CFT regulations.

These guidelines highlight all the essential procedures that are required for intermediary PSPs (IPSPs), payment service providers (PSPs), intermediary CASPs (ICASPs), and crypto-asset service providers (CASPs). Guidelines will also identify incomplete or missing information & address any deficiencies.

This move will also ensure the implementation of the travel rule across the EU and help legal authorities to trace source & origin of funds transfers. It also helps understand when preventing, investigating, and detecting illegal activities and financial crimes is crucial.

According to a press release, Article 19a(2) of Directive (EU) 2015/849 and Article 36 of Regulation (EU) 2023/1113 provide crucial guidance to CASPs & PSPs on several key areas:

1. It highlights the measures providers must implement to comply with certain articles of Regulation (EU) 2023/1113.
2. It addresses the technical considerations for applying the Regulation to direct debit transactions.
3. It provides guidance on measures for recognizing & verifying the beneficiaries’ & originators’ identities of transfers, specifically self-hosted addresses.

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According to a Press Release, AMF will apply these guidelines to digital asset service providers (DASPs) within the scope of its supervisory authority over CASPs operating within its jurisdictions, as outlined in Ordinance No. 2024-397.

Specifically, under its supervision, AMF will benefit from the transitional period established by the Markets in Crypto-Assets Regulation (MiCAR), i.e., regulation (EU) 2023/1114 of the European Parliament and the Council of 31 May 2023. This transitional period is set to conclude on July 1, 2026.