Sumsub, a full-cycle verification provider, has teamed up with Mercuryo, a global payments infrastructure platform, to publish a detailed guide for Virtual Asset Service Providers (VASPs), titled “Mastering Travel Rule Compliance“. The guide covers everything businesses in the digital token space need to know about the Travel Rule and how to implement it effectively to stay compliant.
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.
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 most recent FATF Survey, 35 out of 135 jurisdictions reported having passed Travel Rule legislation as of April 2023, including the U.S., Germany, Singapore, Hong Kong and the UK. Similar measures are expected across the European Union (EU), commencing on December 30, 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.
“The Travel Rule plays a crucial role in promoting a secure and transparent environment within the cryptocurrency space, aligning it with broader financial regulatory objectives and efforts to combat financial crimes. It’s the global standard for ensuring secure VA transfers, and compliance with the Travel Rule is a reliable way to make the cryptocurrency industry transparent and safe for all,” explains Tony Petrov, Chief Legal Officer at Sumsub. “At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”
Last year, Sumsub and Mercuryo released an onboarding guide for cryptocurrency businesses to help them build effective user verification in the Web3 space and resolve compliance issues.
“Our long-term partnership with Sumsub combines joint core competencies and results in the all-encompassing guides for companies that we provide for free. As a global payments ecosystem, we’re building and harmonizing crypto and fiat solutions, which enable businesses across the globe to unlock and harness the power of crypto payments. This collaboration resonates deeply with Mercuryo’s mission of ensuring transaction safety, data security and compliance both for users and crypto platforms,” adds Andrew Ilinsky, Chief Product Officer at Mercuryo.
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