On a mission to help companies adjust to the new crypto regulatory landscape, Notabene, creator of market-leading end-to-end Crypto Travel Rule solution has completed the first ever comprehensive global Travel Rule compliance survey, releasing results in The State of Crypto Travel Rule Compliance Report.
“Our experience with the regulators and Travel Rule implementation have taught us that there are many unique challenges with roll out. The pace is different across companies, countries and many businesses are still unaware of which protocol they intend to use. Now with looming regulatory deadlines, it is essential for the industry to come together to solve some of the implementation and roll-out challenges,” said Pelle Braendgaard, CEO of Notabene. “We started this report aiming to provide first-hand insights from a broad range of crypto businesses on the challenges they’re facing, how they plan to overcome them, and their projected timelines.”
The State of Travel Rule study contains information on how prepared financial institutions and crypto firms are for impending laws from around the world. The poll was completed by 56 businesses from all over the world. In total, 45 percent of respondents had primary operational jurisdiction in Asia-Pacific (APAC), 30% in Europe, Middle East and Africa (EMEA) and 25% in the Americas. 13% of respondents have a banking license or are a banking institution, and 86% of respondents are crypto-native businesses.
By delving into the important components of Travel Rule compliance, the research offers a transparent grasp of compliance preparedness levels and pain spots. It examines the disparities in Travel Rule adoption among countries, as well as ways to implementation and adoption difficulties.
“The report highlighted legal uncertainty and the sunrise period as hindrances to most companies’ roll-out of the travel rule. This is consistent with what we have heard from the industry, where many exchanges have committed the resources to fully prepare for the travel rule but are looking for regulatory clarity around enforcement dates,” said Alice Nawfal, Co-Founder and COO of Notabene. “They would like travel rule roll-out to be fair across the industry. This calls for closer collaboration between regulators and the industry to ensure expectations are clear around roll-out.”
Along with the release of the survey report, Notabene will be hosting a webinar series to create a dialogue between regulators, crypto companies and financial institutions on Travel Rule implementation, starting in February. For more info and early access, sign up here.