Companies that transfer bitcoin or other cryptoassets must collect details of senders and recipients to help authorities crack down on dirty money, EU policymakers proposed on Tuesday in the latest efforts to tighten regulation of the sector.
The law proposed by the European Commission, the EU executive, would apply what is known as the travel rule to crypto transactions to make them traceable.
The rule, which is one of the recommendations of the inter-governmental watchdog, the Financial Action Task Force (FATF), already applies to wire transfers.
"Today's amendments will ensure full traceability of crypto-asset transfers, such as bitcoin, and will allow for prevention and detection of their possible use for money laundering or terrorism financing," the Commission said in a statement.
A company handling cryptoassets for a customer must include the customer's name, address, date of birth and account number, and the name of the person who will receive the cryptoassets.