The UK government has begun the process of implementing the Financial Action Task Force (FATF) “travel rules” for crypto.
As per FATF rules that aim to stop money laundering and terror funding, both the sender and the receiver of the funds have to be identified.
This standard needs to be utilized across the financial services industry, “regardless of the technology being used to facilitate transfers,” declared the Treasury. It further declared that the current regulation doesn’t apply very well to crypto as a result of the unique features of the sector, which is why an adaptation of it was needed.
The document also mentions that: “Cryptoasset firms will need to put in place systems for ensuring that personal information of the originator and beneficiary of a crypto asset transfer is transmitted and received alongside the transfer, in an appropriate format.”
It also makes references to a series of proposals from FATF, such as that beneficiaries shouldn’t be allowed to withdraw amounts over £1,000 if their information is not complete.