What is the travel rule for crypto?

The Travel Rule for crypto states that all crypto companies must screen, record and communicate the information of both sender and recipient for crypto transactions that exceed $1,000 or a certain amount designated by FATF member states. This amount can differ by country.

Do crypto businesses comply with FinCEN's travel rule?

FinCEN’s cryptocurrency guidance makes clear, however, that it expects crypto businesses to comply with the Travel Rule, without exception. At Elliptic, we’re engaged with our customers and industry partners in addressing this compliance challenge.

Can cryptocurrencies satisfy the FATF travel rule?

In truth, the crypto industry managed to find a way to satisfy the FATF Travel Rule without breaking cryptocurrency altogether. First came Ciphertrace which said it had created software that would create a validation certificate to confirm transactions sent between exchanges and wallets.

What is the travel rule?

The Travel Rule has its origins in wire transfers. Extending this requirement to transfers of cryptoassets raises difficult compliance obstacles. This is due to the fundamental differences between transfers of fiat currency through traditional financial institutions, and transfers of cryptoassets on a DLT platform using pseudonymous wallets.