Crypto glossary
Transfer of Funds Regulation (TFR)
The EU Transfer of Funds Regulation (TFR) applies the travel rule to crypto: since 30 December 2024, CASPs send payer and payee data with every transfer.
Regulation (EU) 2023/1113 recast the EU's rules on information accompanying transfers of funds and extended them to crypto-assets. Crypto-asset service providers must collect, verify and transmit the name and account or address details of the originator and the beneficiary for each transfer, and the receiving provider must check that the data is complete before making the funds available. It applies from 30 December 2024, the same date as MiCA's CASP rules.
Unlike the FATF recommendation, which allows a threshold of 1,000 dollars or euros, the EU rule has no minimum amount for crypto: every transfer between providers must carry the data. Special rules cover transfers to and from self-hosted wallets, and providers must apply risk-based procedures when a counterparty fails to send the required information, which can lead to rejecting or returning transfers.
For users, the main visible effects are extra questions when withdrawing to another platform or wallet and occasional delays when the receiving exchange cannot match the information.
Example
A Spanish user sends 200 euros of ETH from one EU exchange to another. The sending exchange transmits her name and account details through a travel rule protocol, and the receiver checks them before crediting the deposit.