UK Crypto Industry Welcomes Travel Rule: Enhancing Transparency And Security

The Financial Conduct Authority (FCA) launched the Travel Rule on August 17th, requiring that UK-based Virtual Asset Service Providers (VASPs) gather, verify, and share information about crypto-asset transactions. This Rule needs to be followed for domestic and cross-boundary transfers, even where a related jurisdiction has yet to adopt this initiative. Consequently, information needs to be provided about the source and destination of the payment being made to establish any associated financial risk. In lieu of complete details, crypto companies must use a risk-evaluation process before furnishing the funds. Goals of the global initiative include more accurately monitoring the crypto asset industry with regards to anti-money laundering and counter-terrorist financing regulations of standard fiscal sectors. The Financial Action Task Force has hearty urged other nations to rapidly put similar provisions in forced, and the UK advances towards completing the Travel Rule by July 2022. This safeguards UK resingle sending payments overseas, thereby displaying its firm hand on upholding transparency and safety in the digital currency sphere.

Robert Wilson author
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