UK Regulator: Crypto Asset Businesses Expected to Comply with the Travel Rule Starting in September
According to the United Kingdom’s Financial Conduct Authority, crypto asset firms operating in the country will be required to comply with the Financial Action Task Force’s travel rule starting on Sept. 1, 2023. Crypto asset businesses will be required to take “all reasonable steps” to ensure compliance with the travel rule. When the rule becomes effective, compliance with the rule is still expected even when a crypto asset business uses a third-party supplier. The United Kingdom’s financial services industry regulator, the Financial Conduct Authority (FCA).
In a statement released on Aug. 17, the FCA suggested that its decision to enforce the requirement aligns with the Financial Action Task Force (FATF)’s call for the swift implementation of the travel rule. Despite the FATF’s call, many countries have failed to implement the travel rule due to delays “in adoption and different timelines for enforcement of the Travel Rule across jurisdictions.”. In instances where funds are being sent to a jurisdiction without the travel rule, the FCA said crypto firms must still collect and verify the information before a transfer is made. If the funds are being transferred from a jurisdiction without the travel rule, the necessary risk-based assessments must be undertaken before deciding to avail these to the beneficiary or not, the regulator said.