Part 4/12:

The EU is pursuing a multi-layered approach. By the end of 2026, each member state will offer a unified digital identity wallet, streamlining KYC processes across borders. This digital ID ties directly into crypto transactions, potentially logging all activities associated with an individual’s identity—including self-custody wallets that interact with regulated exchanges.

Additionally, the EU enforces the "Travel Rule," requiring crypto transfers to be accompanied by recipient information—an invasive procedure that scrutinizes both sender and receiver. The EU’s DAC8 regulation, set to be implemented fully by January 2026, mandates all entities serving EU residents to report transaction data to authorities—whether they are within or outside the EU—further integrating global crypto oversight.