• The UK has just implemented the ‘Travel Rule’ in crypto, mandating crypto firms to reveal transaction parties, ensuring that both senders and recipients are no longer shrouded in anonymity.
• Starting 1 September 2023, UK-based crypto asset businesses will be mandated to gather, verify, and provide information related to crypto asset transfers under the ‘Travel Rule.’
• This move comes after the Financial Action Task Force (FATF) urged global jurisdictions to adopt the Travel Rule quickly, aiming to standardize crypto transaction practices with other financial sectors.
Introduction
According to a recent press release , UK regulators have taken a solid step towards ensuring transparency and accountability in the country’s crypto market. The UK has finally implemented the ‘Travel Rule’ in crypto, mandating crypto firms to reveal transaction parties, ensuring that both senders and recipients are no longer shrouded in anonymity.
Implementing ‚Travel Rule‘ Across Crypto Transactions
Starting 1 September 2023, UK-based crypto asset businesses will be mandated to gather, verify, and provide information related to crypto asset transfers under the ‘Travel Rule.’ This move comes after the Financial Action Task Force (FATF) urged global jurisdictions to adopt the Travel Rule quickly, aiming to standardize crypto transaction practices with other financial sectors. In June 2023, the FATF pointed out problems because different countries were taking different amounts of time to start using the Travel Rule. So, the UK worked with businesses to give clear instructions on how to follow this rule, setting an example for other countries. Firms in the UK are expected to strictly follow the Travel Rule, be responsible for its compliance, and keep track of its adoption worldwide. When dealing with countries not using the Travel Rule, UK crypto companies should check if they can get the needed information