The European Union (EU) is set to implement significant changes to travel regulations starting in 2025, affecting the use of bank cards, cryptocurrencies, and crypto exchanges. Travelers planning trips to the EU need to be aware of these updates to avoid any disruptions during their travels.
According to recent reports, the EU has revised guidelines on the use of bank credit, debit cards, and cryptocurrencies for travelers visiting countries within the region. Some cards may face restrictions or require additional verification to comply with the EU’s financial regulations.
It is advised that travelers contact their financial institutions before their trips to understand any potential limitations or requirements that may affect their use of bank cards and cryptocurrencies.
The EU is introducing the Transfer of Funds Regulation (TFR) Travel Rule, which will extend to transactions involving cryptocurrencies starting in 2025. Crypto asset service providers (CASPs) in Europe will be required to include information about the sender and receiver in transfers of crypto assets. This information must be obtained, held, and shared with the counterpart of the virtual asset transfer and made available to competent authorities upon request.
The TFR Travel Rule applies to transactions involving payment service providers, CASPs, and intermediary service providers operating within the EU. The General Data Protection Regulation (GDPR) will govern the processing of personal data related to financial and crypto asset transfers under the new regulations, ensuring compliance with GDPR standards.
The regulations also require crypto service providers to safeguard the personal information of all parties involved in transactions from accidental loss, unauthorized alterations, or disclosures. However, person-to-person transfers of crypto assets, such as transactions between individuals using self-hosted wallets or exchanges without a CASP, are exempt from the Travel Rule.
In addition to the TFR regulation, the EU’s Markets in Crypto-Assets (MiCA) regulation, which came into full force on December 30, 2024, establishes a comprehensive framework for the crypto-asset market, including consumer protection and financial stability measures. Travelers engaging in cryptocurrency transactions are advised to use exchanges that are fully MiCA-compliant to ensure compliance with EU standards.
Only MiCA-approved crypto exchanges will be allowed to operate within the EU under the new regulations, guaranteeing adherence to rigorous financial and consumer protection standards. Tourists planning to use cryptocurrencies in the EU should verify that their chosen exchange complies with the MiCA framework.
The EU is also introducing the Entry/Exit System (EES) in 2025, replacing traditional passport stamps with a digital tracking system. Every time a traveler crosses a border into the EU or the Schengen Area, their movements will be electronically recorded. This change highlights the importance of travelers being aware of their travel routes and complying with the new digital tracking system.
As the EU implements these new travel regulations, it is essential for travelers to stay informed and prepared for any changes that may impact their trips. By understanding and adhering to the updated guidelines on bank cards, cryptocurrencies, and digital tracking systems, travelers can ensure a smooth and hassle-free travel experience within the EU.