The new requirements mandate that crypto service providers implement stricter customer identification measures for transactions above the $425 threshold, while smaller transactions remain exempt from these requirements. Starting February 25, 2025, providers must also verify the identity of users transferring funds from previously unregistered wallet addresses. The measures follow emerging standards for crypto identity verification being developed by international consortiums. The regulations complement Europe’s forthcoming Markets in Crypto-Assets (MiCA) framework, which establishes standards for digital asset operations across EU member states. If providers cannot obtain sufficient customer information, transactions may be deemed risky, allowing service providers to halt transfers or limit business relationships. The approach mirrors successful implementations by European exchanges that have integrated biometric verification systems for user onboarding.