Travel Rule regulation for crypto businesses in

South Africa

🇿🇦
Regulator
Travel Rule required from
Travel Rule regulation still pending

TLDR: In South Africa, the Intergovernmental Fintech Working Group (IFWG) introduced a policy paper for the crypto industry on April 14, 2020. It states that crypto businesses must comply with the Travel Rule, but it does not specify a transaction threshold. The paper estimates that it will take 6-9 months for local regulators to implement these guidelines.

South Africa’s IFWG released   on April 14, 2020 its Position Paper on Crypto Assets. The paper aligns closely with the FATF Virtual Asset Guidelines, and has an estimated timeline of 6-9 months for implementation by the Financial Intelligence Center (FIC). The paper introduces the term Crypto Asset Service Provider or CASP as a new class of regulated institutions that aligns with the FATF VASP definition. CASPs are required, according to the paper, to comply with FATF’s AML/CFT measures like FATF’s Recommendation 16 on the Travel Rule.

With regards to the Travel Rule, the paper says the following:

8.4.2.2 CASPs will be required to implement Recommendation 16 (‘the travel rule’) of the FATF Recommendations. The originating CASP should obtain, and hold, required and accurate originator information as well as required and accurate beneficiary information of the crypto asset transaction, submit this information to the beneficiary CASP or another obliged entity, and make this information available on request to the appropriate regulatory and/or law enforcement authorities. The beneficiary CASP should obtain, and hold, required and accurate originator information as well as required and accurate beneficiary information of the crypto asset transaction, and make this information available to the appropriate regulatory and/or law enforcement authorities if and when requested to do so. It is not required that this information be directly attached or encoded to the crypto asset transaction, but this information should be transmitted immediately and securely on request by the appropriate authorities.

No mention of transaction limits, but these may already be covered in existing regulation.

Last updated
June 22, 2020
Comply with the travel rule

Verify who's on the other side of a transaction

Exchange the Travel Rule information via secure channels

Work with any company, regardless of the protocol the use

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