CoolBitX founder Michael Ou believes that regulators in Asia are the first to adhere to the “travel rule” o International Financial Action Group (FATF or FATF) travel rule, which will enter into force in June this year.
The startup has developed a solution for the travel rule called Sygna Bridge that enables exchange with senders and recipients every transaction.
On May 7, he announced that he had done so a series of tests for cross-border transfers who demonstrated the effectiveness of the Sygna bridge in complying with the FATF guidelines, Verify that the transactions are not named terrorists and drug dealers.
Singapore and South Korea
Ou agreed Cointelegraph what do you think Singapore and South Korea have the best security measures before the start of the travel rule in a few weeks.
“Asia is on the way to changing the crypto industry and could provide a plan for the rest of the world“he said, highlighting the Singapore Payment Services Act and South Korean legislation amending the law Act of reporting and use of financial transaction information You indicateas examples of regulations prepared for the travel rule.
As the third largest economy in the world, Japan has major financial institutions Nomura, SBI Holdings and Rakuten make significant investments in the Japanese crypto market, according to Ou Japan must also play a major role in regulating virtual asset service providers (Virtual Asset Service Providers, VASP in English):
“The mutual assessment report, which is expected to be released in Japan in the near future, is also expected to focus on VASP’s compliance with FATF recommendations. It would be useful for countries other than supervisory authorities in Japan, which many consider to be a leader Consider when adopting digital assets could demonstrate measures to ensure that virtual asset service providers comply with FATF recommendations. “
Meanwhile InterVASP has released a new messaging standard to facilitate data exchange between VASPs. If this is effective, it would also help the company comply with the FATF Anti-Money Laundering (AML) regulations.
History of the travel rule
In 2019, the FATF urged global regulators to adopt their AML guidelines for cryptocurrencies. This has been referred to as a travel rule or “travel rule” and they provide a number of AML and ATF (Anti-Terrorist Financing) measures in exchange to prevent the use of cryptocurrencies illegal.
The FATF said that “it will monitor the application of these new rules in every country and financial services provider, and will conduct a 12-month study starting in June 2020,” which would give the crypto community a year to catch up.
FATF compliance worldwide
“The overwhelming majority [de los criptoexchanges en todo el mundo] They still face some challenges, “said Ou.
“I imagine that most stock exchanges – at least those in the FATF countries – are looking for ways to comply with the ‘travel rule’. However, there are additional complications because the countries in which countries have different levels of maturity relates to the Development of regulations. Some standards may go beyond FATF requirements and without clear regulations, the exchange may hesitate to look for a solution. “
The FATF published a report in March 2020, which found this to be the case VASPs in the United States have “largely met” their recommendations and that the regulator that oversaw digital assets in Canada also enforced the rules. Japan, Singapore and South Korea have not yet been rated by the FATF this year.
In the UK, however, HM Treasury decided not to change the existing rules to give the VASP more time to develop solutions.