The UK Financial Conduct Authority (FCA) has announced that from 1 September 2023, crypto-asset businesses in the UK will have to comply with new rules to prevent money laundering and terrorist financing.
UK Reveals Rules For Crypto Businesses To Follow
The rules, known as the “Travel Rule”, require crypto-asset businesses to collect, verify, and share information about the sender and recipient of crypto-asset transfers, such as their names, addresses, and account numbers.
The Travel Rule is part of the global standards set by the Financial Action Task Force (FATF), an intergovernmental body that promotes policies to combat money laundering and terrorist financing.
The FCA said the Travel Rule aims to increase the transparency of crypto-asset transfers and make it harder for criminals to use crypto-assets for illegal activities.
The FCA also said it is working closely with the crypto-asset industry to provide guidance on how to comply with the Travel Rule and what to expect from firms.
FCA expects companies to take all reasonable steps and exercise due diligence to comply with the Travel Code, even when using third-party suppliers.
*Not investment advice.
