Cryptocurrency businesses in the UK may suspend certain crypto transactions to comply with the new Cryptocurrency Travel Rule, which came into effect in the UK today, September 1st.
New rules for so-called virtual asset service providers (VASP) have already been published by the British financial regulator FCA on August 17. introduced and provide UK-based crypto service providers to collect, verify and share a wide range of information relating to crypto transactions.
If incoming payments are received from an individual or entity from a foreign jurisdiction that does not implement the travel rule, the VASP must conduct a “risk assessment” to determine whether “crypto funds should be transferred to the beneficiary.”
— Financial Conduct Authority (@TheFCA) August 17, 2023
The same rule applies to Brits who want to send money abroad.
The travel rule was originally established in June 2019 by the UN agency Financial Action Task Force. The United Kingdom has a related statute AcceptedThe travel rule can be implemented from July 2022.
The controls are primarily aimed at combating money laundering (AML) and the financing of terrorism (CFT) in relation to blockchain payments.
Other countries that have already introduced travel bans According to Sygna.io USA, Germany, Japan, Singapore, Switzerland, Canada, South Africa, Netherlands and Estonia.
On June 23, the FATF reprimanded its member states, a survey of which showed that more than half of them had so far taken no action to enforce the rule.
An investigation conducted by the FATF in March 2022 found that at that time only 29 countries out of 98 countries had complied with the requirements of the travel rules, and only a small fraction of these countries had already started implementation.
However, Ian Andrews, chief marketing officer of blockchain data service Chanalysis, agreed in April 2022. considerIntegrating cross-border data exchange between crypto service providers will be “a very difficult problem to solve”.
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