Sumsub, Mercuryo release Travel Rule guide for VASPs

Monday 1 April 2024 11:38 CET | News

Verification provider Sumsub has partnered with payments infrastructure platform Mercuryo to publish a guide about Travel Rule for Virtual Asset Service Providers (VASPs).


Sumsub and Mercuryo have collaborated to release a comprehensive guide titled ‘Mastering Travel Rule Compliance’ for Virtual Asset Service Providers (VASPs). This guide provides information for businesses in the digital token sector on understanding and effectively implementing the Travel Rule to ensure compliance.

The Travel Rule, which is a set of guidelines introduced by the Financial Action Task Force (FATF), requires financial institutions engaged in virtual asset (VA) transfers to collect and share the personal data of senders and recipients in transactions. Adherence to the Travel Rule are key anti-money laundering (AML) and counter-terrorism financing (CTF) measures that enable VASPs and financial institutions to stay fully compliant with cryptocurrency regulations, avoid regulatory penalties, and maintain their licenses.

Essential insights for cryptocurrency integration

Addressing the Travel Rule is critical to integrating cryptocurrency into the existing financial landscape and maintaining a secure, accountable, and compliant environment. According to the a FATF survey, 35 out of 135 jurisdictions reported having passed Travel Rule legislation as of April 2023, including the US, Germany, Singapore, Hong Kong, and the UK. Similar measures are expected across the European Union (EU), commencing on 30 December 2024.

In the guide, readers will obtain an explanation of how the Travel Rule works and extensive information about the implementation status in various jurisdictions, along with practical insights on how to incorporate the Travel Rule. This will help them prepare their business for global expansion.

Sumsub officials emphasise the pivotal role of the Travel Rule in fostering a secure and transparent cryptocurrency environment. Compliance is crucial for industry integrity and safety. They focus on aiding organisations in navigating Travel Rule complexities, offering solutions to ensure compliance, cost-effectiveness, and risk mitigation. Their collaboration with Mercuryo yields a comprehensive navigation tool for VASPs.

Representatives from Mercuryo stated that as a global payments ecosystem, they’re building and harmonising crypto and fiat solutions, which enable businesses across the globe to unlock and harness the power of crypto payments. This collaboration resonates with Mercuryo’s mission of ensuring transaction safety, data security, and compliance both for users and crypto platforms.

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Keywords: cryptocurrency, digital assets, compliance, regulation, partnership
Categories: DeFi & Crypto & Web3
Companies: Mercuryo, Sumsub
Countries: World
This article is part of category

DeFi & Crypto & Web3




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