FATF completes first 12-month review of virtual-asset standards and Travel Rule implementation
Financial Action Task Force publishes review finding many jurisdictions have failed to properly implement the Travel Rule for cryptocurrencies.
On June 30, 2020, FATF completes first 12-month review of virtual-asset standards and Travel Rule implementation. Financial Action Task Force publishes review finding many jurisdictions have failed to properly implement the Travel Rule for cryptocurrencies.
The Travel Rule required Virtual Asset Service Providers (VASPs) like cryptocurrency exchanges to collect and share customer information for transactions exceeding certain thresholds, similar to requirements that applied to traditional wire transfers. FATF's review revealed significant variation in how different countries were approaching implementation, with some moving quickly to enact legislation while others had made little progress or were still determining how to adapt the international standards to their domestic legal frameworks.
The slow and inconsistent implementation created challenges for cryptocurrency businesses operating internationally, as they faced a patchwork of different requirements and timelines across jurisdictions. Exchanges and service providers needed to collect and transmit customer data in some countries but not others, creating operational complexity and potential compliance gaps.