KyberSwap leaves EU due to new AML rules

Non-custodial exchange KyberSwap, ranked second in size among similar exchanges in the European market,moves from Malta to the British Virgin Islands due to new EU regulation.

In the email that KyberSwap sent outto its registered users this week, it is said that the exchange has taken such a step in response to the fifth EU Anti-Money Laundering Directive (5AMLD), which entered into force on 10 January.

According to the new regulation, those working in the EUcryptocurrency firms should implement KYC measures and report any suspicious customer actions. This requires a certain system of accounting and obtaining information about the source of user funds. Cryptocurrency companies must also hire an employee to oversee compliance with AML rules.

According to the letter, KyberSwap, currentlyworking in Malta, will move to the British Virgin Islands on January 24. The exchange said that "the new rules will create too high a barrier, both regulatory and in terms of costs for most traders," so the company decided to manage the exchange from a new jurisdiction.

KyberSwap will no longer be managedMalta-based Kyber Network International Limited and will begin to operate under the control of KYRD International Limited, a subsidiary registered in the British Virgin Islands. At the same time, the exchange notes that there will be no changes in the management team and the company’s team.

KyberSwap is not the only exchange that has decidedleave the EU in response to 5AMLD. Last week, exchange Deribit said it was changing jurisdiction from the Netherlands to Panama due to new AML rules, and in October exchange Bittrex left Malta due to the Maltese government's tightened anti-money laundering regulations.

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