AML Crypto EU: What You Need to Know About Anti-Money Laundering Rules for Cryptocurrency in Europe

When you trade or hold crypto in Europe, you’re not just using a new kind of money—you’re operating under strict AML crypto EU, Anti-Money Laundering regulations that require crypto businesses to verify users, track transactions, and report suspicious activity. Also known as crypto compliance in Europe, these rules are no longer optional—they’re enforced across all 27 EU member states with real penalties for violations. This isn’t about slowing down innovation. It’s about making sure crypto platforms can’t be used to hide illegal money, and that everyday users aren’t unknowingly caught in the crosshairs of fraud or sanctions.

The FATF Travel Rule, a global standard requiring crypto platforms to share sender and receiver information for transactions over €1,000. Also known as VASP requirements, it’s now mandatory for all regulated exchanges and wallet providers in the EU as of 2025. That means if you send ETH from Binance to a DeFi protocol, both sides must exchange identity data. It’s not just big platforms either—any service handling crypto in the EU, even small ones, must comply. This directly affects how you move funds, what wallets you use, and even whether a project can legally operate here.

And it’s not just about tracking transactions. The VASP requirements, rules that classify crypto businesses as Virtual Asset Service Providers and force them to register with national authorities, conduct customer due diligence, and maintain audit trails. Also known as crypto licensing, these rules turn platforms into financial institutions in the eyes of regulators. If a platform doesn’t follow them, it gets shut down. Users lose access. Funds get frozen. That’s why you see fewer shady exchanges in Europe now—and why legitimate ones like Bitpanda or Kraken have built full compliance teams.

What does this mean for you? If you’re using crypto in the EU, you’ve probably already been asked for ID, a selfie, or proof of address. That’s AML crypto EU in action. It’s not perfect—some users feel it’s too intrusive—but it’s working. Scams involving stolen funds are harder to pull off. Darknet markets struggle to cash out. And legitimate projects can raise capital with trust, not just hype.

Below, you’ll find real-world examples of how these rules play out—from how platforms like SyncSwap handle identity checks on Layer 2, to how the FATF Travel Rule affects cross-border transfers, and why some crypto projects simply can’t launch in the EU without breaking the law. These aren’t theoretical debates. These are the rules shaping your day-to-day crypto experience.