Cryptoasset businesses in the United Kingdom are now required to withhold certain crypto transfers to comply with the new Travel Rule for crypto that came into effect on September 1. The Financial Conduct Authority introduced the rules targeting virtual asset service providers (VASPs) on August 17, which require them to collect, verify and share information relating to crypto-asset transfers. If an inbound payment is received from a person or entity from an overseas jurisdiction that hasn’t implemented the Travel Rule, the VASP must make a risk-based assessment as to whether to make the cryptoassets available to the beneficiary. The same rule would also apply to Brits looking to send payments outside of the U.K. The Travel Rule was created by the UN agency Financial Action Task Force in June 2019 and passed into legislation in the U.K. in July 2022. It attempts to prevent anti-money laundering (AML) and counter-terrorist financing (CTF) activities carried out on-chain. Other countries that have adopted the Travel Rule include the US, Germany, Japan, Singapore, Switzerland, Canada, South Africa, the Netherlands and Estonia. A June 23 survey by FATF revealed that more than half of the 98 jurisdictions had failed to take any action towards implementing the rule. A March 2022 survey by FATF found only 29 of 98 jurisdictions had passed the requirements needed as part of the travel rules and a small subset had started enforcement. Ian Andrews, the chief marketing officer of blockchain forensics platform Chanalysis, explained in April 2022 that coordinating the exchange of information between VASPs cross-borders will be a “pretty hard problem” to solve — at least at the onset.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Europe |
| Countries | 🇬🇧 🇺🇸 🇩🇪 🇯🇵 🇸🇬 🇨🇭 🇨🇦 🇿🇦 🇳🇱 🇪🇪 |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Ian Andrews, FATF, Financial Conduct Authority |
| Companies | Sygna.io, Chanalysis, FATF, Financial Conduct Authority |
| Currencies | None |
| Securities | None |
