Debunking the Grandfathering Clause Myth for the EU Travel Rule

As announced yesterday by Lana Schwartzman - CAMS, CCFC, CRC, NB-TRFC in her post after the European Banking Authority (EBA) released their explainer entitled Preventing Money Laundering and Terrorism Financing in the EU’s Crypto-Assets Sector, we can now finally put to rest the myth surrounding a "grandfathering clause" for the EU Travel Rule.

The EU’s evolving crypto regulations, including the Transfer of Funds Regulation (TFR) and MiCAR, are reshaping compliance expectations for Crypto Asset Service Providers (CASPs).

However, there’s a persistent misconception that MiCAR’s transitional provisions exempt CASPs from adhering to the Travel Rule during the grace period.

Let’s clear the air: There is no blanket grandfathering clause.

CASPs operating under the transitional framework must still comply with the Travel Rule and all applicable AML/CFT requirements, ensuring transparency and security in crypto-asset transfers.

In this article, we explore:

? What MiCAR’s Article 143(3) really means for CASPs

? Why the Travel Rule remains non-negotiable during the transition

? How CASPs can prepare to thrive under these evolving regulations

?? Avoid the risks of non-compliance and position your business for success.

Read the full article on our blog to understand what these changes mean for your operations and how to stay ahead of the regulatory curve.