Publishes UK Crypto Industry Travel Guide
Crypto UK, the self-regulating body for the UK crypto industry, has released in-depth guidance to navigate the “complexities” of complying with UK crypto travel legislation, aiming to bring more transparency to crypto transfers.
The CryptoUK Travel Rule Working Group has published a 36-page guide to help crypto businesses navigate UK travel law.
Led by Elliptic's Senior Policy Advisor Mark Aruliah and Nottabene's Senior Regulatory and Compliance Associate Catarina Veloso, the team worked with key stakeholders to provide industry perspectives on compliance challenges.
Key crypto compliance considerations for VASPs
On September 1, 2023, the United Kingdom will implement travel legislation for crypto businesses in its jurisdiction. The regulation requires virtual asset service providers (VASPs) to collect, verify and share information related to crypto transfers. According to the regulation, VASPs must conduct risk-based assessments before making cryptocurrency accessible to a recipient.
A spokesperson for CryptoUK told Cointelegraph that the guidance aims to help VASPs, crypto businesses and other market participants gain a better understanding of the regulation's application in the UK.
The trade association, for its part, said that while it is working with regulators to get more transparency for businesses, businesses still face difficulties in navigating the rules. CryptoUK said:
“[…] There are still complications for companies with the multi-jurisdictional travel guide approach and we have therefore produced this guide to help share some best practice with companies on how to navigate the UK environment.
As a result, the organization compiled insights into the current compliance approaches of travel guide working group member companies.
Main places to celebrate
When asked about the key factors that businesses should consider when complying with the travel law, the spokesperson said that the law applies to companies registered with the Financial Conduct Authority (FCA) and conduct unmanaged wallet transfers and inter-crypto asset trading – a UK-based crypto firm for another.
UK-based cryptocurrency businesses must collect, verify and share information about the source of funds and the beneficiary when transferring digital assets to another cryptocurrency business.
The spokesperson added that the characteristics of the transfer will determine the level of information that businesses participating in the transfer must collect, filter and transfer.
RELATED: Industry experts say 2025 will be a ‘good year for crypto policy'
The UK is “making progress” with regulatory transparency.
Meanwhile, CryptoUK believes that the United Kingdom has improved its approach to crypto regulation. A spokesman said: “The UK has been making progress on its regulatory transparency approach with a number of initiatives over the past few years.”
While the upcoming elections may cause a temporary pause in the process, CryptoUK hopes to drive discussions with the new government to ensure that the UK “doesn't fail again” in terms of crypto regulation.
Magazine: Mt Gox won't drop Bitcoin yet, Hong Kong crypto exchanges: Asia Express
