July 24, 2021 / news

UK May Oblige Crypto Companies To Share Information On Transactions


Now regulators are holding public consultations, the legislative innovation is scheduled for the spring of 2022.

UK financial regulator has begun public consultations on the introduction of the so-called “travel rule”. This rule was developed by the Financial Action Task Force on Money Laundering (FATF). Travel rule implies the exchange of data on crypto transactions between companies that work with virtual assets (VASPs or Virtual Assets Service Providers).

The regulator said the consultation is a key step towards amending anti-terrorist financing and money laundering regulations. Public consultations will last until October 14, amendments are planned for the spring of 2022.

The report notes that the travel rule will have to be followed by all industry representatives without exception. In particular, the requirements will be applied to crypto exchanges and custodians.

British Treasury plans to oblige companies to report cryptocurrency transfers in excess of £ 1000 ($ 1375). For transfers below this threshold, more concise recipient and sender information may be provided.

In 2020, Financial Conduct Authority introduced mandatory registration for all cryptocurrency companies. The deadline was set first on December 15, 2020, and then on January 10, 2021, and then postponed to March 31, 2022. The Treasury said it had delayed formal implementation “to allow crypto asset operators to meet the requirements.” So far, only five UK crypto companies have been approved under the AML standards.

FATF recently completed a round of research on the implementation of international standards for the control of money laundering through virtual assets. The agency found that many jurisdictions have made significant progress in implementing the FATF standards.

Recall that European Commission has published a package of bills aimed at combating money laundering and terrorist financing. Regulatory changes also affected crypto assets.

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