CryptoUK, a self-regulatory organization representing the crypto industry in the United Kingdom, has unveiled a comprehensive guide to help navigate the complexities of complying with the U.K.’s crypto Travel Rule, designed to enhance transparency in crypto transfers.
The CryptoUK Travel Rule Working Group has released a detailed 36-page guide to assist crypto businesses in understanding and adhering to the U.K.’s Travel Rule. Headed by Mark Aruliah, senior policy adviser at Elliptic, and Catarina Veloso, regulatory and compliance senior associate at Notabene, the group collaborated with key stakeholders to offer insights on compliance challenges within the industry.
As of September 1, 2023, the U.K. enforced the Travel Rule for crypto businesses operating within its jurisdiction. This rule mandates virtual asset service providers (VASPs) to gather, verify, and exchange information related to crypto transfers. VASPs must conduct risk assessments before facilitating cryptocurrency transactions to recipients.
A representative from CryptoUK informed Cointelegraph that the guide aims to provide VASPs, crypto businesses, and other market participants with a deeper understanding of how the rule is applied in the U.K. Despite efforts to clarify regulations with regulators, businesses still encounter difficulties in navigating the rules.
To address this, CryptoUK has compiled insights from companies within its Travel Rule Working Group regarding current compliance strategies. Businesses registered with the Financial Conduct Authority (FCA) that engage in unhosted wallet transfers and inter-crypto asset transactions between U.K.-based crypto firms must collect, verify, and share information about the origin of funds and the recipient.
The spokesperson emphasized that the nature of the transfer will determine the extent of information that businesses involved in the transaction should gather, verify, and transmit. CryptoUK believes that the U.K. has made significant strides in enhancing regulatory clarity within the crypto industry. Despite potential disruptions due to upcoming elections, the organization aims to engage with the new government to ensure that the U.K. does not lag behind in crypto regulation advancements.