The Financial Conduct Authority (FCA) has set out clear
expectations for cryptocurrency businesses operating in the UK, outlining the
necessary steps they must take to comply with the significant change in the
legislation for money laundering prevention that was enacted in 2022.
According to a statement
shared by the regulator today (Thursday), come September 1, 2023,
cryptocurrency enterprises must comply with the Travel Rule, which necessitates
the collection, verification, and sharing of important information pertaining
to crypto asset transfers.
The Travel Rule emerged
in response to the growing need for transparency and accountability within the
realm of cryptocurrency transactions. By making it mandatory for crypto asset
companies to share pertinent information about transfers, this new legislation
seeks to curb the potential misuse of digital assets for illicit purposes.
Notably, the Financial
Action Task Force (FATF) champions the adoption of the Travel Rule across
jurisdictions, aiming to standardize crypto practices akin to the
well-established rules in the broader financial services sector, the FCA
stated. The rule promotes anti-money laundering and counter-terrorism financing
measures.
As the…
