According to reports, Crypto.com has initiated the enforcement of the European Union’s Travel Rule, which has resulted in the barring of an XRP deposit.
According to reports, Crypto.com has initiated the enforcement of the European Union’s Travel Rule, which prevents a user from depositing XRP. The Travel Rule, also known as Regulation (EU) 2023/1113, is anticipated to be implemented throughout the continent on December 30. The introduction of the Travel Rule was one of the broader strategies to prevent money laundering and ensure the safety of industry participants.
The regulation also encourages transparency by requiring crypto exchanges to collect transaction information. Users are to furnish information regarding the origin and destination of funds, as well as the names of the users involved in the transactions. Nevertheless, users were taken aback when a user announced that Crypto.com had already commenced enforcing the rule prior to the deadline. The development has also compelled users to query their privacy and user rights concerns.
Crypto.com has reportedly discontinued the restriction, at least in relation to XRP transfers, according to reports. In an X post, Alpha Lions Academy CEO Edoardo Farina disclosed the development. The prominent crypto personality observed that users are now obligated to submit supplementary information regarding their transactions prior to receiving XRP credit in their accounts.
Farina emphasized that the development is discouraging, pointing out that the rule was intended to be implemented on December 31. According to Farina, Crypto.com “refused to automatically credit my funds” despite the fact that the “Travel Rule” did not take effect until December 30. He also enquired as to why the requirements were necessary, given that he conducted the transactions in his country of origin, observing that they were only mandatory for cross-border transactions.
Several of the practices of certain centralized exchanges regarding rules and regulations are consistent with the remarks of the crypto personality. Although some of them implement enforcement prematurely, others exceed their authority.
One example occurred when the Securities and Exchange Commission (SEC) initially filed a lawsuit against Ripple and directed platforms to remove the token from their listings. Others delisted the tokens ahead of schedule, leaving users in the dark, while others waited for users to sell their holdings for other tokens.
In the broader crypto market, centralized exchanges have been the subject of criticisms and controversies of this nature. The crypto community recently criticized Coinbase for blocking and restricting users’ accounts without providing prior notice. That was a recent example. The restrictions, which targeted the majority of their earliest users, raised concerns, despite the fact that the exchange reserved the right to execute such actions without notice.
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