Odaily Planet Daily News Cryptocurrency businesses in the UK can now start withholding certain cryptocurrency transfers to comply with the new cryptocurrency travel rules that came into effect on September 1.
The U.K.’s Financial Conduct Authority first introduced rules for virtual asset service providers on Aug. 17, ensuring that U.K.-based VASPs would “collect, verify and share information related to the transfer of crypto assets.” If an inbound payment is received from a person or entity in an overseas jurisdiction that has not implemented the Travel Rule, VASPs must conduct a risk assessment on “whether to provide crypto assets to beneficiaries”.
The travel rule was established in June 2019 by the United Nations agency Financial Action Task Force. The UK will enact travel rules through legislation in July 2022. The rules are designed to prevent money laundering and terrorist financing on-chain. (Cointelegraph)