“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.”
Sumsub and Mercuryo have together published a paper titled “Mastering Travel Rule Compliance” aimed at providing guidance to Virtual Asset Service Providers (VASPs).
Designed to aid cryptocurrency businesses in understanding and implementing the Travel Rule to ensure compliance and support business growth, the guide is particularly timely as the FATF’s recent survey revealed that 35 of 135 jurisdictions have already enacted Travel Rule legislation, with the European Union set to follow by December 30, 2024.
VASPs need to respond to the growing global commitment to integrating cryptocurrency within regulated financial systems and ensuring a safe, transparent, and compliant environment. The guide addresses the complexity of the regulation and provides practical solutions to stay compliant while minimizing costs and risks.
The Travel Rule, established by the Financial Action Task Force (FATF), mandates that financial entities involved in virtual asset transactions collect and share personal information of both senders and recipients. This regulation is a critical component of anti-money laundering (AML) and counter-terrorism financing (CTF) efforts. It is essential for VASPs and financial institutions to adhere to these guidelines to remain compliant, avoid penalties, and retain their licenses.
A guide to minimize costs and avoid potential risks of non-compliance with Travel Rule
Tony Petrov, Chief Legal Officer at Sumsub, said: “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. 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.”
Andrew Ilinsky, Chief Product Officer at Mercuryo, commented: “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.”
