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“Not your keys, not your crypto” sparks debate. On December 27, Edoardo Farina, a well-known proponent of XRP, revived the age-old crypto mantra, “Not your keys, not your crypto,” while calling for early implementation of EU travel rules by Crypto exchange Crypto.com .
Farina’s frustration stems from the exchange’s refusal to credit his 12XRP deposit unless he disclosed the user’s name and the origin of the funds.
Farina shared his experience on X (formerly Twitter), saying, “I went back to my home country and sent $12XRP as a test. Despite the ‘Travel Rule’ not taking effect until December 30th, Crypto.com refused to automatically credit my funds.”
His post questions the necessity of such measures for domestic transmissions and highlights growing concerns about the compliance practices of centralized platforms.
What is the travel rule?
The Travel Rule, officially Regulation (EU) 2023/1113, will enter into force on December 30, 2024. It requires cryptocurrency exchanges to collect detailed transaction information, including:
- User names.
- Origin of funds.
Designed to combat money laundering, the rule mandates greater transparency in crypto transfers, especially cross-border transactions. However, Farina argues that Crypto.com’s actions are premature and excessive, especially for transactions within a single country.
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Farina’s tweet quickly went viral, with many users expressing concern about the implications of centralized exchanges implementing regulations ahead of schedule.
His pointed question: “Why is Crypto.com already infringing on my rights?” sums up the unease among crypto enthusiasts who see such measures as an erosion of the sector’s decentralized principles.
This incident highlights a broader trend: centralized platforms are tightening their compliance frameworks, often at the expense of user autonomy.
The comeback has fueled discussions about moving to decentralized exchanges and custodial-free wallets, which are closer to the core ethos of cryptocurrency.
Although the Travel Rule is a specific EU regulation, its effects have global resonance. Crypto exchanges are under increasing pressure to proactively comply with regulatory frameworks, which often leads to friction with their user bases.
This is not the first case of centralized exchanges causing user dissatisfaction. Coinbase has recently faced criticism for account limits and slow customer support, further fueling the narrative that centralized platforms may not fully serve users’ interests.
What’s Next for EU Crypto Users?
With increasing attempts to improve compliance, users are faced with a dilemma between compliance and regulation on the one hand and decentralized principles of crypto on the other.
Farina’s case shows that centralized exchanges simplify the user experience in exchange for their control and anonymity.
Crypto.com’s recent preemptive actions could pave the way for others as the Travel Rule is about to go into effect. But for now, the debate rages on: do such measures foster trust or alienate the very crypto community it was created to serve?
