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2021 was the year crypto transactions had mainstream adoption–2022 is the year of crypto regulations being enforced to keep transactions safe. New regulatory requirements have become the latest disruptive force that senior-level executives need to consider when making important decisions regarding business growth.
In Nov 2021, crypto’s total market cap surpassed $3T for the first time, having grown 5-fold over one year. With the influx of institutional players and broad adoption of new technologies in DeFi and NFTs, we expect that market to continue growing fast in coming years.
As crypto transactions move beyond speculative traders and technology enthusiasts into cross-border payments and capital market structures, the Financial Action Task Force (FATF) relegated regulations like the Crypto Travel Rule to mitigate money laundering and terrorist financing. FATF’s Travel Rule requires any participating financial institutions in a transaction to exchange relevant beneficiary and originator KYC information.
To explore how the Travel Rule is presently being rolled out in the crypto and financial services industries, Notabene ran a survey to gauge global compliance readiness and gain a better understanding of the primary pitfalls to compliance.
The survey was conducted in October 2021, with 56 crypto businesses and financial institutions participating. The below report includes the survey results, as well as covers the latest state of enforcement by jurisdictions.
The results show that financial institutions and cryptocurrency companies are taking Travel Rule compliance seriously but are at varying states of readiness–largely dependent upon their primary operating jurisdiction.
To explore how the Travel Rule is presently being rolled out in the crypto and financial services industries, Notabene ran a survey to gauge global compliance readiness and gain a better understanding of the primary pitfalls to compliance. The survey was conducted in October 2021, with 56 crypto businesses and financial institutions participating. The results show that financial institutions and cryptocurrency companies are taking Travel Rule compliance seriously but are at varying states of readiness–largely dependent upon their primary operating jurisdiction. Additionally, it highlights the differences in Travel Rule adoption across jurisdictions, approaches to Travel Rule implementation, and summarizes adoption pitfalls.
The State of Crypto Travel Rule Compliance Report is the first-ever comprehensive global Crypto Travel Rule compliance survey. This report demonstrates a transparent understanding of compliance readiness levels and pain points across multiple VASPs in different jurisdictions. Additionally, the results show that the industry would benefit from closer collaboration with regulators when rolling out Travel Rule. As such, Notabene will kick off several initiatives: including monthly testnets and a webinar series to foster a dialogue between regulators and the industry on some of the key issues identified.
We help financial institutions and virtual asset service providers (VASPs) comply with the FATF’s Recommendation 16 “Crypto Travel Rule” as required by domestic regulators in a growing number of jurisdictions.Notabene is the only end-to-end Travel Rule compliance solution that offers a protocol-agnostic approach to Travel Rule complianceEasy to use dashboard & ability to set risk management rulesOur in-house solution, TRNow, allows counterparty VASPs to share, send, receive, and store required PII data privately and securely
