Tag: travel rule

Given the current Travel Rule implementation, it is time to rethink how the crypto industry approaches compliance. One of the most promising solutions is creating a public database of critical service wallets. By requiring VASPs to register and update their wallet addresses, this solution could provide a much-needed layer of transparency and accountability that the current system lacks. Standardising Compliance Data Across the Industry A public database would serve as a source of truth for VASPs and reliable information from third-party sources, allowing entities to confirm each other’s compliance status.…

Read More

The Financial Action Task Force (FATF) Travel Rule, proposed in 2019, aimed to harmonise cryptocurrency transactions with traditional financial anti-money laundering (AML) requirements. The purpose was to prevent money laundering, terrorist financing, and other illegal actions in the fast-expanding digital asset market. However, despite laudable intentions, the current implementation of the Travel Rule has numerous flaws that limit its effectiveness in meeting its stated goals. Understanding the Travel Rule The Travel Rule mandates Virtual Asset Service Providers (VASPs), such as cryptocurrency exchanges and custodial wallet providers, to gather and share…

Read More