CryptoUK, a self-regulatory trade association for the United Kingdom’s crypto industry, has released a comprehensive guide to help navigate the complexities of complying with the U.K.’s crypto Travel Rule.
This rule is designed to enhance transparency in crypto transfers.
The CryptoUK Travel Rule Working Group has issued a detailed 36-page guide aimed at assisting crypto businesses in understanding and complying with the U.K.’s Travel Rule.
This effort was led by Elliptic’s senior policy adviser, Mark Aruliah, and Notabene’s regulatory and compliance senior associate, Catarina Veloso.
They collaborated with key stakeholders to provide insights on compliance challenges faced by the industry.
Implemented on September 1, 2023, the U.K.’s Travel Rule mandates that virtual asset service providers (VASPs) collect, verify, and share information regarding crypto transfers.
VASPs are also required to conduct risk-based assessments before making cryptocurrency available to the recipient.
A spokesperson from CryptoUK told Cointelegraph that the guide is intended to help VASPs, crypto businesses, and other market participants understand how to apply the rule within the United Kingdom.
While CryptoUK has worked with regulators to clarify the rules for businesses, challenges remain in navigating these regulations.
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As CryptoUK noted, “there are still complications for organizations in the multi-jurisdictional approach of the Travel Rule and as such, we produced this guide to help share some best practices with organizations in terms of how to navigate the U.K. environment.”
Consequently, the guide includes insights into the compliance approaches of member companies in its Travel Rule Working Group.
Regarding compliance, the spokesperson highlighted that the rule applies to companies registered with the Financial Conduct Authority (FCA) and involves unhosted wallet transfers and inter-crypto asset transactions between U.K.-based firms.
These businesses must collect, verify, and share information about the source of funds and the beneficiary when transferring digital assets.
The spokesperson added that the specifics of the transfer will determine the level of information required to be collected, verified, and transmitted.
CryptoUK believes that the U.K. is making significant progress in crypto regulation.
“The U.K. has been making progress in its approach to regulatory clarity with many inroads being made in the past few years,” the spokesperson stated.
Despite potential delays due to upcoming elections, CryptoUK aims to continue driving discussions with the new government to ensure the U.K. remains at the forefront of crypto regulation.
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