Nikolas Sargeant
Eurogroup President Paschal Donohoe announced plans requiring crypto service providers to record detailed sender and recipient information, marking a significant step toward financial transparency in digital assets.
Eurogroup President and Ireland's Finance Minister Paschal Donohoe has outlined the European Union's ambitious plans to increase transparency in cryptocurrency transactions. Speaking at the European Anti-Financial Crime Summit 2025 in Dublin, Donohoe revealed that the initiative would implement mandatory tracking of both senders and recipients involved in digital asset transfers.
During his keynote address, Donohoe described the plan as a "reclass of performance transfer mechanisms" at the EU legislative level. "Specifically, to record data on the senders and recipients of funds, [so it] now applies to crypto asset service providers," he explained.
The Finance Minister emphasized the necessity of expanding financial regulation's scope to address cryptocurrency market challenges. "It's essential that we broaden the scope of this kind of financial regulation," Donohoe stated, adding that these measures would directly tackle transparency issues plaguing the crypto sector.
Enhanced Coordination Through New Anti-Money Laundering Framework
Donohoe highlighted the critical importance of the EU's new anti-money laundering authority (AMLA) rules, describing the legislative package as essential for strengthening the bloc's capabilities in combating money laundering and terrorism financing.
"Closer cooperation and coordination is absolutely critical. Not just at an international level, at a European level," Donohoe emphasized. "This initiative is a landmark development. What it aims to do is create a strong toolkit for tackling these deeply serious issues."
The European Commission initiated this regulatory direction in May 2023 by adopting a regulation on fund transfers specifically designed to enhance the transparency and traceability of crypto-asset movements. Building on this foundation, the broader AML regulation will implement significant restrictions on cryptocurrency firms, prohibiting interactions with anonymous wallets and privacy coins effective July 1, 2027. Additionally, regulators will block IP addresses of non-compliant decentralized exchanges.
Broader Financial Regulation Rather Than Crypto-Specific Rules
While these regulations substantially impact the cryptocurrency sector, industry experts note that the Anti-Money Laundering Regulation (AMLR) represents broader financial oversight rather than crypto-specific legislation. Patrick Hansen, Circle's EU Strategy and Policy Director, clarified that "the new AMLR law is not a crypto regulation" but rather a comprehensive framework applying to all financial institutions, including crypto firms.
The regulatory approach has drawn criticism from some industry participants. James Toledano, COO of Unity Wallet, expressed concerns that the new EU AMLR regulations threaten "the ethos of DeFi." In comments to Decrypt, Toledano explained that while these laws align with traditional banking standards, they fail to accommodate cryptocurrency's decentralized architecture.
"They can and will be easily circumvented as self-custodial crypto is truly global and holders will find other ways of cashing out their chips," Toledano warned, suggesting potential limitations to the effectiveness of the EU's regulatory strategy.
