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
Money Laundering
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Read this Term and counter-terrorism financing
measures.
As the implementation
deadline draws near, UK cryptocurrency companies are bracing themselves for the changes that the Travel Rule will bring. The FCA has outlined a set of
expectations that crypto asset firms need to adhere to, highlighting the
importance of exercising due diligence and taking reasonable steps to ensure
compliance.
Adapting
Business Processes
Some of the major
industry players have already paused their operations in response to
the new regulations. Finance
Magnates reported
yesterday (Wednesday) that PayPal was temporarily
suspending cryptocurrency sales for users in the UK for at least three months beginning October 1. In a statement
addressed to its customers, the payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
Read this Term giant emphasized commitment to compliance,
assuring customers that they can still hold or sell their existing crypto
holdings.
For instance, when
sending or receiving crypto assets transfers within the UK or to jurisdictions
that have embraced the Travel Rule, complete adherence becomes necessary, the
FCA noted. However, in cases where transfers are made to jurisdictions that are
yet to adopt the rule, companies are required to establish whether the
recipient entity received the mandated information.
Additionally,
in June, the FCA announced robust
new rules for marketing
cryptocurrencies in a bid to bolster consumer protection and foster informed
decision-making within the industry. Effective from October 8, 2023, these
rules encompass a range of measures, including the introduction of cooling-off
periods for first-time crypto investors and a ban on ‘refer a friend’
bonuses.
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
Money Laundering
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Money laundering is a blanket term to describe the process by which criminals disguise the original ownership and proceeds of criminal conduct by making such proceeds appear to be derived from a legitimate source.Money laundering is an issue that traverses countless industries and sectors, which includes the financial services space. Though criminal money may be successfully laundered without the assistance of the financial sector, billions of dollars’ worth of criminally derived money are laund
Read this Term and counter-terrorism financing
measures.
As the implementation
deadline draws near, UK cryptocurrency companies are bracing themselves for the changes that the Travel Rule will bring. The FCA has outlined a set of
expectations that crypto asset firms need to adhere to, highlighting the
importance of exercising due diligence and taking reasonable steps to ensure
compliance.
Adapting
Business Processes
Some of the major
industry players have already paused their operations in response to
the new regulations. Finance
Magnates reported
yesterday (Wednesday) that PayPal was temporarily
suspending cryptocurrency sales for users in the UK for at least three months beginning October 1. In a statement
addressed to its customers, the payments
Payments
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl
Read this Term giant emphasized commitment to compliance,
assuring customers that they can still hold or sell their existing crypto
holdings.
For instance, when
sending or receiving crypto assets transfers within the UK or to jurisdictions
that have embraced the Travel Rule, complete adherence becomes necessary, the
FCA noted. However, in cases where transfers are made to jurisdictions that are
yet to adopt the rule, companies are required to establish whether the
recipient entity received the mandated information.
Additionally,
in June, the FCA announced robust
new rules for marketing
cryptocurrencies in a bid to bolster consumer protection and foster informed
decision-making within the industry. Effective from October 8, 2023, these
rules encompass a range of measures, including the introduction of cooling-off
periods for first-time crypto investors and a ban on ‘refer a friend’
bonuses.