Source: Adobe/sakhorn38
All cryptocurrency exchanges in Japan will adopt the Financial Action Task Force (FATF) travel rule on April 1, a move that means most of the largest trading platforms in East Asia will have begun to comply with the controversial protocol even before they are required to do so by law. so.
The travel rule essentially requires platforms to remove anonymity from crypto transactions in an effort to combat money laundering. In essence, the rule is intended to create a data-sharing network in which senders and recipients of all crypto asset transfers are required to exchange identifying information, report suspicious transactions, and notify regulators when they spot a transfer that appears out of the ordinary. of place.
The FATF urged the international community to hurry up and enshrine the travel rule in national law. But East Asian trading platforms, which are among the world's most highly regulated exchanges, have been keen to show they can comply even without legal notices.
Hedge Guide reported that the Japan Virtual Currency Exchange Association (JVCEA), a self-regulatory body that lists all licensed Japanese crypto exchanges as first-tier members and a number of first-tier companies awaiting licenses as second-tier members. level, was responding to a call from the Financial Services Agency (FSA) for regulation.
Last year, the FSA asked JVCEA members to develop a plan to comply with the travel rules, and the latter responded with a two-step response.
As of April 1, all crypto transactions made through exchanges in Japan will need to be accompanied by the following details:
- the recipient's name
- Data about the origin of the transaction (and whether or not the transaction is from an exchange)
- Data about the recipient's address and information about whether or not the recipient's wallet is hosted on an exchange
In a second step, which will be implemented on October 1, it will also be necessary to provide more details about the recipient, as well as information about "the purpose of the transaction", although the exact details "are still to be determined". . . ”
Additional information will also be required from anyone transacting over €865.
As noted, major South Korean crypto exchanges are either collaborating on joint travel compliance efforts or launching their own models, months ahead of the enactment of legislation requiring them to do so.
Also, in February, a group of major crypto companies, such as Anchorage, Bitgo, BlockFi, Circle, Coinbase, Gemini, Kraken, etc., announced the launch of Travel Rule Universal Solution Technology (TRUST), a solution designed to meet a requirement known as the travel rule while protecting the security and privacy of their clients, they said. The solution already includes well-known industry members in the United States, while global expansion will follow "shortly," they added.