European regulators are getting desperate. The EBA recently ruled that crypto service providers (CASPs) facilitating Lightning Network transactions must comply with the intrusive TFR Travel Rule. But ...
As a brilliant analysis by BarentsKrans notes, a Lightning transaction isn't a final "transfer of crypto-assets" under MiCAR/TFR definitions. It is an off-chain update to a private payment channel—essentially a temporary, administrative record. The actual value transfer only settles when the channel closes on-chain.
Read the full breakdown: https://www.barentskrans.nl/en/publication-blogs/introduction-to-the-lightning-network-a-transfer-of-value-or-just-an-administrative-record/
Read the full breakdown: https://www.barentskrans.nl/en/publication-blogs/introduction-to-the-lightning-network-a-transfer-of-value-or-just-an-administrative-record/
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