New rules for cryptocurrency transactions in the EU: what Ukrainian refugees need to know
Cryptocurrency has long become an integral part of the financial life of many people. For Ukrainians who ended up abroad due to the war, digital assets have become a convenient means of storing and transferring funds. In light of this, it is important to understand the changes that will come into force in the European Union from 30 December 2024. New rules for cryptocurrency transactions adopted by the EU aim to strengthen security, transparency and trust in digital finance. IA “FAKT” examined in detail how these innovations will affect users, especially Ukrainian refugees.
Cryptocurrency as a financial salvation for Ukrainians
For many Ukrainians, cryptocurrency has become a reliable way to save money in unstable conditions. The possibility of fast and anonymous transfers, the absence of the need for physical access to banking institutions — all this makes digital assets an attractive tool. But at the same time, there is a growing need for regulation to avoid risks associated with fraud, money laundering or terrorist financing.
New rules: what will change
From December 30, 2024, new regulations will come into effect in the European Union, which will affect all aspects of the use of cryptocurrency. The main changes concern owners of private cryptocurrency wallets and large transactions. For Ukrainian refugees who actively use cryptocurrency, these rules can significantly change the approach to conducting financial transactions.
First, the innovations introduce mandatory additional identity verification for transactions worth more than €1,000. This means that owners of cryptowallets will have to provide supporting documents to ensure transparency of transactions. Financial institutions are now obliged to check the data of both the sender and the recipient of funds, which will make it much more difficult to use cryptocurrency for criminal purposes.
Second, users must prove their ownership of the crypto-wallet from which transactions are made or funds are received. This can be done using a cryptographic signature or other methods that confirm the legality of ownership. This approach avoids situations where wallets are used by third parties without the owner’s knowledge.
Third, cryptocurrency platforms and exchanges are now required to register all large transactions and, in the event of suspicious transactions, to submit relevant information to regulatory authorities. These requirements are part of the wider MiCA (Markets in Crypto-Assets) regulation and the updated Anti-Money Laundering (AML) Directive.
The goals of the new regulations
The adopted changes are aimed at achieving several key goals. First of all, they are aimed at combating the financing of terrorism and illegal transactions. Transparency of operations will reduce the risks associated with the use of cryptocurrencies in illegal schemes. In addition, the rules protect users from fraud and increase trust in crypto-assets among citizens.
For Ukrainians who use cryptocurrency, it is important to understand that these rules also contribute to their safety. If you lose access to your wallet or experience transaction issues, verification and regulation can help resolve the situation faster.
How to prepare for change
Ukrainians who use cryptocurrency services in the EU should prepare in advance for the new requirements. First, check if your wallet meets KYC (know your customer) standards. Second, ensure that you have up-to-date documents such as your passport or other identification. Third, make sure your crypto wallet supports a cryptographic signature feature for proof of ownership. Finally, keep records of your transactions so that you have all the information you need in the event of an audit.
New rules for cryptocurrency transactions in the EU are a step towards safer and more transparent use of digital assets. For Ukrainian refugees, this means the need to carefully monitor changes and adapt to new conditions. Awareness and timely preparation will avoid problems and ensure comfortable use of cryptocurrency within European countries. In times when financial stability is critical, understanding the “rules of the game” becomes the key to a successful future.
