The European Union (EU) is rolling out significant travel regulation changes starting in 2025, with new rules affecting the use of bank cards, cryptocurrencies, and crypto exchanges. Travelers heading to the EU should prepare for these adjustments to avoid disruptions during their trips. According to recent reports, the EU has updated guidelines regarding the use of bank credit, debit cards, and cryptocurrenices for those traveling to countries within the region. Certain cards may face restrictions or require additional verification measures to comply with the EU’s financial regulations. Travelers are encouraged to contact their financial institutions ahead of their trips to understand any potential limitations or requirements. TFR-enforced crypto regulatory changes ahead The EU is implementing the Transfer of Funds Regulation (TFR) Travel Rule, which will extend to transactions involving cryptocurrencies starting in 2025. Crypto asset service providers (CASPs) in Europe will be required to accompany transfers of crypto assets with information about the sender and receiver. This data must be obtained, held, and shared with the counterpart of the virtual asset transfer and must be available upon request to competent authorities. The Travel Rule applies to transfers involving payment service providers, CASPs, and intermediary service providers (e.g., brokers and custodians) operating within the EU. The General Data Protection Regulation (GDPR) will govern the processing of personal data related to financial and crypto asset transfers as part of the new regulations. CASPs are required to ensure that any personal data shared during transactions complies with GDPR standards. Moreover, the standards require crypto service providers to take the necessary steps to protect the personal information of all parties involved from accidental loss, unauthorized alterations, or unauthorized disclosures. However, it does not apply to person-to-person (P2P) transfers of crypto assets, defined as transactions between individuals acting as consumers without the involvement of a CASP. For example, transactions involving self-hosted wallets or exchanges are not subject to the Travel Rule unless a CASP is involved. MiCA and TFR offer regulatory clarity on crypto use The TFR regulation also covers transfers between payment service providers or CASPs acting on their own behalf, provided there is no intermediary. However, it excludes cases where both the sender and receiver are payment service providers or CASPs acting independently. Additionally, the EU’s Markets in Crypto-Assets (MiCA) regulation on digital currencies, which came into full force on December 30, 2024, provides a comprehensive framework for the crypto-asset market, including consumer protection and financial stability measures. Travelers engaging in cryptocurrency transactions are advised to ensure that the exchanges they use are fully MiCA-compliant , as only these approved platforms will be able to operate within the EU. With the new regulations in place, only MiCA-approved crypto exchanges will be permitted to operate within the EU, ensuring they adhere to the EU’s rigorous standards for financial operations and consumer protection. Tourists planning to use cryptocurrencies during their visits to the bloc’s member states should verify that their chosen exchange complies with the MiCA framework. Among the banned cryptocurrencies are algorithmic stablecoins and Tether’s USDT, which failed to comply with the laws of the financial authority. Crypto exchanges that have the green light to operate under MiCA laws include but are not limited to, Binance, Kraken, BYDFi, and Coinbase, while platforms like Bitget are still seeking approval from the financial watchdog. New EU travel laws to replace passport stamps Alongside these financial regulations, the political-economic union is also introducing the Entry/Exit System (EES), which will replace traditional passport stamps with a digital system. Starting in 2025, every time a traveler crosses a border into the EU or the Schengen Area, their movements will be electronically recorded. Unlike the current system, where unrestricted movement is allowed between Schengen countries after arrival, the EES will log each border crossing. This change makes it crucial for travelers to be aware of their travel routes and ensure they comply with the new digital tracking system. From Zero to Web3 Pro: Your 90-Day Career Launch Plan
