UK’s Financial Conduct Authority Mandates Crypto Firms to Abide by FATF’s Travel Rule
On September 1, 2023, the Financial Conduct Authority (FCA) will require crypto asset firms operating in the United Kingdom to adhere to the Financial Action Task Force’s (FATF) travel rule.
The FCA asserts that crypto businesses must take “all reasonable steps” to ensure compliance with this rule, even when utilizing third-party suppliers. This decision aligns with the FATF’s call for swift implementation, as other nations have encountered delays and diverse timelines in enforcing the rule. The FCA emphasizes that its guidance supports firms in understanding compliance expectations.
Notably, crypto asset businesses within the UK must collect, verify, and share information, even when they send transfers to jurisdictions that do not adhere to the travel rule. Risk-based assessments are essential when dealing with transfers to or from non-compliant jurisdictions. The FCA is working on guidance to aid compliance and welcomes input from crypto asset businesses until August 25, 2023.
Clever Robot News Desk 21st August 2023
