CryptoUK, a crypto trade association, has published a detailed guide for the UK crypto sector, which would make it easy for industry firms to follow the country’s crypto travel rule.
In 2023, the UK crypto sector faced new regulations in the form of a crypto travel rule. The travel rule would bring more transparency to crypto transfers. According to the rule, virtual asset service providers (VASPs) would have to follow certain obligations and report crypto transfers. It would apply to all VASPs registered with the Financial Conduct Authority in the UK.
UK authorities had introduced the new rule under an existing regulation last year. Cut to almost a year later, and a trade association has published a detailed guide for VASPs in the country. The guide will aid firms in following the rules and being compliant.
CryptoUK, in this guide, said, “The Travel Rule Good Practices Guide, developed by CryptoUK’s Travel Rule Working Group, aims to empower Virtual Asset Service Providers (VASPs), crypto-asset businesses and digital asset industry participants with an understanding of the Travel Rule and how it applies in the UK.”
Meanwhile, CryptoUK’s Travel Rule Working Group is headed by Mark Aruliah and Catarina Veloso, who are experts in this domain. Moreover, the guide will make compliance much easier for VASPs, who might have faced difficulty and complications while navigating the rule.
In the UK, the FCA oversees crypto activities that fall within the scope of existing financial regulations. This includes Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) measures. In recent years, the UK has adopted a cautious stance towards crypto. Yet, it has been friendly with the crypto sector.
It has promoted the exploration of a central bank digital currency, apart from other use cases. Various regulatory authorities in the UK have been at the forefront of these initiatives.
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