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

Crypto Travel Rule, Effective September 1, Aims to Stop Money Laundering and Terrorist Financing Activities chained.

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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.

Rules targeting virtual asset service providers were first introduced by the Financial Conduct Authority on August 17, requiring UK-based VASPs to “collect, verify and share information” relating to transfers of crypto-assets.

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 passed legislation to start applying the travel rule in July...