The Financial Conduct Authority (FCA) is introducing rules that require firms to gather and send data on cryptocurrency transfers. This is to prevent the misuse of digital assets for illegal activities.
The Financial Conduct Authority (FCA) has announced that cryptocurrency operators must follow the ‘Travel Rule,’ which is a global effort to prevent illegal activities like money laundering and terrorism financing using digital assets.
This rule brings crypto companies under the oversight of the Financial Action Task Force (FATF), an anti-money laundering watchdog. It requires these firms to gather and share specific information about the source of funds and their recipients.
Starting from September 1, 2023, this rule applies in the UK even if crypto companies use external suppliers. However, it won’t stop them from trading with places that haven’t implemented the rule. In such cases, companies should assess the risk before transferring assets.
The FCA stated that it will stay updated on the global adoption of the Travel Rule and adjust its expectations accordingly.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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