New cryptocurrency travel rules in the UK have come into effect, which may withhold certain cryptocurrency transfers

2023-09-01 09:09:04

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ChainCatcher news, according to Cointelegraph, the new cryptocurrency travel rules in the UK came into effect on September 1 and now support the withholding of certain cryptocurrency transfers.

This new "travel rule" was introduced by the UK's Financial Conduct Authority on August 17 and requires that VASPs headquartered in the UK "collect, verify, and share information related to cryptocurrency transfers." If a VASP receives incoming payments from individuals or entities in jurisdictions that have never implemented the travel rule, it must conduct a "risk-based assessment" on "whether to provide the cryptocurrency to the beneficiary."

The travel rule was established by the Financial Action Task Force, a UN agency, in June 2019, and the UK began enforcing the travel rule through legislation in July 2022, aimed at preventing money laundering and terrorist financing activities conducted on-chain.

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