The European Union (EU) has finalized new rules that will apply to all Crypto asset service providers regulated by the EU, including crypto exchanges. With these rules, the EU is looking to prevent terrorist financing, money laundering, and financing of organizations under economic sanction by the EU.

Namely, crypto service providers will be required to collect and store information that can identify any trader involved in crypto transactions. The service providers will also be required to hand that information over to authorities that are conducting investigations.

The new regulation will apply regardless of the value of the transfer. Additionally, if the transaction size is more than 1,000 euros, the service provider would need to verify the identity of the wallets’ owners involved in the transaction.

Despite anonymity being central to cryptocurrency trading, the new rules will enable the tracking of crypto transfers in much the same way as fiat currency transfers are tracked. Ernest Urtasun, a member of the European Parlament, said in a tweet that the EU is “putting an end to the wild west of unregulated crypto, closing major loopholes in the European anti-money laundering rules”.

One case where the new regulations won’t apply are transactions between traders with wallets that do not utilize a service provider. For instance, an Ethereum transaction between two MetaMask wallets would not be subject to the new rules.