The Transfer of Funds Regulation (ToFR), also referred to as the Funds Transfer Regulation or Travel Rule, is an EU regulation that aims to improve traceability in both fiat and crypto transactions. It’s designed to enhance the transparency of financial transactions and combat money laundering and terrorist financing. Crypto service providers are required to collect, transmit, and store information on senders and recipients involved in crypto transfers (such as Bitcoin).
The EU’s aim is to improve the traceability of crypto asset transfers to help prevent, detect, and investigate money laundering and terrorism financing. This allows authorities to track suspicious transactions more effectively. ToFR is part of the EU’s digital finance strategy and takes effect on December 30, 2024.
Self-hosted wallet:
These are wallets where you, as the owner, have sole control over the private keys. They are also called “private”, “self-hosted”, or “unhosted” wallets.
CASP:
Crypto-Asset Service Providers are companies or legal entities that provide crypto asset-related services to clients. Note: While the EU officially refers to them as CASPs, they’re often called VASPs (Virtual Asset Service Providers) in other regions.
