Crypto Travel Rule: 37.5% are performing post-transaction against FATF requirements, says Notabene
“VASPs are asking for a unified and interoperable global approach for reaching their counterparties and transmitting Travel Rule messages. As a result, regulators must work together with industry to develop a unified approach to Travel Rule compliance that addresses the needs of the entire industry. We are already seeing this in the EU and UK and hope other regions will follow.”
Notabene has published its second comprehensive State of Crypto Travel Rule Compliance Report, which provides insightful results from their 2023 global Travel Rule compliance survey.
The State of Travel Rule report includes survey results from financial institutions and crypto companies worldwide on how prepared they are for upcoming regulatory deadlines. Sixty-nine companies completed the survey, representing broad global coverage.
75% already impose restrictions on transactions with self-hosted wallets
The report includes real-world feedback on differences in Travel Rule adoption across jurisdictions, approaches to implementation, components of compliance, and summarizes adoption pitfalls.
Key findings show that 84% of companies are already complying or plan to by the end of 2023, and 75% of respondents impose some restrictions on transactions with self-hosted wallets. The report also found that of those who comply, 37.5% perform the travel rule post-transaction, not fulfilling today’s FATF requirements.
This year’s report includes a comprehensive illustration of the current global state of Travel Rule adoption, showcasing key information regarding jurisdictional enforcement, including information on the enforcement status of each jurisdiction, as well as the threshold amount and self-hosted wallet obligations.
23% of companies need to comply in more than one jurisdiction
Pelle Braendgaard, CEO of Notabene, said: “This year’s report highlights that Travel Rule compliance is becoming increasingly global, with nearly a quarter (23%) of the surveyed companies needing to comply with Travel Rule requirements in more than one jurisdiction. These findings suggest that the Travel Rule is becoming more global in nature, underscoring the need for a solution to the common cross-border challenges posed by the Travel Rule.”
Lana Schwartzman, Head of Regulatory and Compliance at Notabene, commented: “Our global and diverse respondents have reinforced the global nature and the various levels of Travel Rule compliance. VASPs are asking for a unified and interoperable global approach for reaching their counterparties and transmitting Travel Rule messages. As a result, regulators must work together with industry to develop a unified approach to Travel Rule compliance that addresses the needs of the entire industry. We are already seeing this in the EU and UK and hope other regions will follow.”
Notabene offers a pre-transaction decision making platform that enables customers to identify and stop high-risk activity before it occurs.
The firm’s SafeTransact platform helps financial institutions and crypto businesses unlock their full potential in the digital economy. Customers can use its multi-source data and software to automate real-time decision-making, perform counterparty sanctions screening, identify self-hosted wallets, and complete the smooth rollout of Travel Rule compliance.
More than 85 companies leverage Notabene’s software to manage real-time regulatory and counterparty risk in virtual asset transactions, including Copper, Luno, Crypto.com, and Bitstamp.
