Crypto Travel Rule Laws Spread Faster Than Action
Crypto Travel Rule legislation has expanded significantly in recent years, but its implementation remains uneven across jurisdictions. According to a report by FM Intelligence, 91 out of 109 surveyed countries have enacted laws related to the Travel Rule, which requires virtual asset service providers (VASPs) to transmit originator and beneficiary data with transfers.
However, only 36 of these countries reported having focused supervisory or enforcement measures in place. This leaves a significant gap between legislation and action, leaving VASPs to handle counterparty checks, data transfers, and delayed credits across different regimes.
The UK's implementation is a notable example of this issue. The Financial Conduct Authority told firms to take a risk-based decision when information was incomplete, but kept the UK business responsible when it used a third-party Travel Rule supplier.