The U.K. government is starting the process of implementing the Financial Action Task Force (FATF) “travel rule” for cryptoassets.
- Under FATF standards to prevent money laundering and terror funding, the originator and recipient of funds being transferred need to be identified.
- The rule should be applied consistently across the financial services industry, “regardless of the technology being used to facilitate transfers” the Treasury said in a consultation document published Thursday.
- Existing regulations don’t transfer smoothly to crypto because of peculiarities of the sector, and need to be adapted, it said.
- “Cryptoasset firms will need to put in place systems for ensuring that personal information of the originator and beneficiary of a cryptoasset transfer is transmitted and received alongside the transfer, in an appropriate format,” according to the document.
- The document includes several proposals from FATF's proposals, among them the suggestion that beneficiaries should be prevented from withdrawing amounts above £1,000 if required information is missing.
- Responses to the consultation must be received by Oct. 14.