UK travel rule comes into effect and could halt some crypto transfers

The Crypto Travel Rule, which came into effect on September 1, aims to stop anti-money laundering and anti-money laundering activities. financing of terrorism. in chain.

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Crypto-asset businesses in the UK may now start withholding certain crypto transfers to comply with the new cryptocurrency travel rule that came into effect on September 1.

The rules targeting virtual asset service providers were first introduced by the Financial Conduct Authority on August 17 and ensure that UK-based VASPs “collect, verify and share information” relating to the transfer of crypto-assets.< /p>

If an incoming payment is received from a person or entity in a foreign jurisdiction that has not implemented the travel rule, the VASP must conduct a “risk-based assessment” to determine “whether to make the crypto-assets available to the beneficiary”. . »

The Travel Rule is designed to bring greater transparency to crypto-asset transfers, making it harder for criminals to use the # crypto for illegal purposes.https://t.co/kmB6rgMn5e

— Financial Conduct Authority (@TheFCA) August 17, 2023

The same rule would also apply to Britons wishing to send payments outside the UK.

The travel rule was created by the UN agency's Financial Action Task Force in June 2019. The UK has passed legislation to begin enforcing it...