#BlocklikeNews Cryptocurrency businesses in the UK can now start withholding certain cryptocurrency transfers to comply with new cryptocurrency travel rules that come into effect on September 1.
The UKâs Financial Conduct Authority first introduced rules for virtual asset service providers on Aug. 17, ensuring that UK-based VASPs would âcollect, verify and share information related to the transfer of crypto assets.â If an inbound payment is received from a person or entity in an overseas jurisdiction that has not implemented the Travel Rule, VASPs must conduct a ârisk-based assessmentâ of whether to provide crypto assets to beneficiaries.
The travel rule was established in June 2019 by the United Nations agency Financial Action Task Force. The UK will introduce legislation to enforce the travel rules in July 2022. The rule changes are aimed at preventing money laundering and terrorist financing activities on-chain.
