A new report claims that around 70% of respondents are practicing travel rules or planning to complete compliance in Q1/Q2 2022.
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A new survey shows that the crypto industry is eager to comply with the so-called Financial Action Task Force (FATF) Travel Rule and appears willing to work with regulators. reason to expedite this process.
According to a survey conducted by Notabene, a New York-based crypto compliance company, most of the crypto industry will comply with the Travel Rule by Q2 2022. Currently, The report states that around 70% of respondents are practicing the code or plan to complete their compliance in Q1/Q2 2022.
The advent of cryptocurrencies has introduced a new problem in efforts to combat money laundering and terrorist financing. Since 2014, the FATF has been monitoring the region to set standards to address these new dangers. Since then, FATF has continued to refine and clarify its stance on Anti-Money Laundering requirements for the cryptocurrency sector to keep up with its rapid development.
FATF Recommendation 16 on wire transfers, also known as the Travel Rules, states that virtual asset service providers (VASPs), financial institutions, and other regulated entities in Member states must provide originator and beneficiary details to counterparties in transactions of $1,000 or more.
The survey polled 56 businesses from around the world who responded, 45% of which are based in Asia Pacific, 30% in Europe, the Middle East and Africa. , and 25% in North America. 13% of respondents have a banking license or are currently a bank; 86% are crypto-native companies.
According to the survey, about a third of companies (31%) are fully or partially compliant with the regulation. The report also revealed that 92% of respondents have internal compliance and legal departments, and 78% of these businesses consider these teams to be able to ensure the company operates within external rules. and internal control.
What is your company’s schedule for achieving full compliance with the Travel Code? Source: Notabene
Related: Governments begin implementation of FATF’s Global Travel Rule
On the other hand, half of the respondents noted that enforcement obstacles to compliance with the Travel Code include sunrise time and regulatory uncertainty over the most relevant aspects. of application. According to the report, the majority of respondents (46%) are unaware of the protocol they intend to use for compliance.
FATF published a set of rules, including the Travel Rule, in 2019 to prevent cryptocurrencies from being used for money laundering and terrorist financing. Japan is one of the most receptive jurisdictions to the Travel Rules order, along with other Asian countries like South Korea and Singapore.